The United States will double the reinsurance capacity for the Strait of Hormuz to $40 billion.

Odaily Planet Daily reported that the United States will double its commitment to provide reinsurance collateral guarantees for vessels willing to transit through the Strait of Hormuz, to $40 billion, and will introduce new insurance partners, including American International Group and Berkshire Hathaway. Last month, the U.S. International Development Finance Corporation (DFC) announced a $20 billion reinsurance program. Today, the agency said that Travelers Insurance, Liberty Mutual Insurance, Berkshire Hathaway, American International Group, Starr, and CNA, together with Chubb Insurance, will provide an additional $20 billion in reinsurance support for its marine facilities.

In a statement, DFC Chief Executive Officer Ben Blakey said: “These leading U.S. insurance companies bring deep underwriting experience in marine cargo and maritime war insurance, strengthening our efforts to restore confidence in seaborne trade.” The agency also said it will work with its insurance partners to determine which vessels qualify for reinsurance. To be eligible, applicants must provide information including the vessel’s port of origin and destination, the principal beneficial owners and their locations, the cargo owners and their locations, as well as information on the lenders that provide financing for the vessel, and more. (Jin10)