This new agreement was announced by Ben Black, Chief Executive Officer (CEO) of DFC, and Scott Bessent, Secretary of the U.S. Treasury.

The plan is to work in close coordination with CENTCOM in order to restore confidence in maritime trade, help stabilise international commerce, and support American and allied businesses operating in the Middle East during the ongoing conflict with Iran.

The DFC reinsurance facility will insure losses of up to $20 billion on a rolling basis, and the revolving insurance offering applies only to vessels that meet the criteria. Initially, the facility will focus on hull & machinery and cargo.

The announcement also states that the DFC has identified best-in-class, preferred American insurance partners, while the DFC and Treasury are coordinating closely with CENTCOM on next steps in the implementation of this plan.

This announcement propels the implementation of President Trump’s directive to utilise DFC’s innovative financial toolkit to safeguard the continued flow of trade.

If readers recall, last week, President Trump directed the DFC to extend political risk insurance and financial guarantees for all maritime trade, particularly energy cargoes transiting the Strait of Hormuz, aimed at stabilising global energy flows and easing maritime security risks.

Ben Black, Chief Executive Officer, DFC, commented, “I am grateful to President Trump and Secretary Bessent for their support and approval of DFC’s plan to restore confidence in maritime trade and stabilise international markets.

“Working alongside CENTCOM, DFC coverage will offer a level of security no other policy can provide. We are confident that our reinsurance plan will get oil, gasoline, LNG, jet fuel, and fertiliser through the Strait of Hormuz and flowing again to the world.”

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On February 28th, 2026, the US and Israel hit Iranian military targets, to which Iran responded by launching missiles and drones at US bases and regional allies.

The geopolitical shock in the region increases underwriting and investment challenges for numerous lines of insurance business, notably marine, aviation, property, travel, and supply-change.

“It is very early to tell at this point, but we would estimate that near-term rate increases for Marine Hull insurance in the Gulf could range from 25 to 50 percent, barring any direct attack on Merchant shipping, which could have major repercussions across war insurance rates. Given the military build-up in the region, crew are far more likely to be concerned than they might have been to previous risks. The situation remains very fluid, requiring ongoing attention,” said Mortimer.

According to the Financial Times, insurance companies have told ship owners that they would cancel policies and lift prices for vessels passing through the Gulf and Strait of Hormuz, a vital sea passage from the Persian Gulf to the open ocean.

Insurance brokers also told the Financial Times that war risk insurers have already submitted cancellation notices for insurance policies covering ships moving through the Strait of Hormuz.

News reports suggest that over 200 vessels dropped anchor in the area. Last year, the Strait saw over 14 million barrels passing per day. “The primary risks centre on the Persian and Arabian Gulf, particularly the threat of vessel boarding and seizure by Iranian forces and the potential closure of the Strait of Hormuz,” explained Mortimer.

It’s been revealed that shipping company Maersk paused sailings through Bab el-Mandeb and the Strait of Hormuz, while marine insurer Skuld has cancelled war risk cover. Skuld emphasises the evident tightening of reinsurers’ appetite for war‑risk exposure, which the Association says will result in reinsurers withdrawing capacity at short notice.

At the same time, Indian public sector reinsurer, General Insurance Corporation of India (GIC Re), will withdraw marine hull war risk cover in several high-risk global regions, according to CNBC TV 18, citing an official notice issued by the company.

According to Stephen Rudman, Head of Marine, Asia, Aon, underwriters are withdrawing or revising existing quoted additional premiums (APs) for transits through listed high-risk areas, with the reinstatement of cover being offered at materially increased rates.

Additionally, he explained that there is a heightened underwriting scrutiny for voyages into or near sensitive zones, including a potential requirement for prior approval.

Rudman says that it is important to note that these moves relate specifically to war risk extensions. Core hull and machinery and P&I covers remain in place unless otherwise advised.

Looking at the hull war market, Rudman believes that it has reacted more immediately due to aggregation exposure and capital sensitivity. He said, “Additional premiums for vessels transiting high-risk waters are rising sharply and may continue to fluctuate in the short term. Cargo war risk remains available; however, rates are increasing, and quotations are being reviewed on a voyage-by-voyage basis, particularly for energy and bulk commodity trades.”

Rudman explained that, right now, broker Aon is not seeing a systemic withdrawal of capacity. Rather, the market is repricing to reflect the elevated risk profile and reinsurance constraints. Should the situation escalate materially (e.g., sustained state conflict or significant vessel loss), further rate correction is likely, he warned.

Aon recommend that clients review war cancellation provisions within existing policies, engage with brokers early, before fixing voyages in high-risk areas, assess charterparty war clauses and allocation of additional premiums, and factor potential AP volatility into freight and commercial planning.

Rudman said, “Our marine team continues to monitor developments closely and is in active dialogue with London and international markets.”

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The firm traces this evolution back to the late 19th century, when Lloyd’s underwriters formally separated “risks of the seas,” such as weather and collision, from “risks of men,” like enemy action. This historic split created the foundation of modern marine war risk insurance.

For decades, the segment remained subdued. International treaties curbed naval hostility, piracy fell under control, and reinsurers treated war risk as a manageable specialty line.

However, Willis Re’s recent analysis shows that the stability of the past century has now vanished. The company points to a sharp escalation in maritime hostilities, both state-sponsored and covert, that is redefining risk exposure for insurers and reinsurers alike.

Willis Re highlights several flashpoints driving this change. Iranian and Israeli forces have exchanged strikes on shipping in the Strait of Hormuz. Chinese authorities continue to disrupt trade routes in the South China Sea. Houthi militants have launched missiles, drones, and explosive boats against commercial vessels in the Red Sea since late 2023.

In the Black Sea, tankers have been damaged by Ukrainian rockets, while piracy has again emerged off the Somali coast. Even US naval actions against smuggling vessels in the Caribbean and Pacific have added to the perception that the world’s shipping lanes are increasingly volatile.

The firm notes that many of these incidents fall into what it calls the “gray zone” of conflict—aggressive acts that stop short of open warfare but still serve political or economic goals. This type of hybrid pressure, according to Willis Re, has become one of the defining characteristics of today’s marine war risk environment.

In addition to physical attacks, Willis Re draws attention to a growing wave of cyber interference targeting the maritime sector. Spoofing operations, where vessels are fed false GPS or AIS data, are occurring daily, often to disguise ship movements or cause navigational disruption. The company warns that these attacks can even interfere with automated underwriting systems that depend on vessel tracking data, blurring the line between physical and digital warfare at sea.

Willis Re explains that reinsurers have responded by tightening terms and exclusions in their treaties. The first step was the introduction of “RUB” exclusions, restricting coverage for ships linked to Russia, Ukraine, or Belarus. Later, reinsurers pushed for war risks to be removed from charterers’ protection and indemnity (P&I) policies, forcing separate, sub-limited coverage that in some cases costs more than traditional P&I protection.

The firm also warns that “accumulation risk,” once considered minimal in marine lines, is becoming an unavoidable reality.

Willis Re recalls how the COVID-19 pandemic exposed this vulnerability when dozens of cruise liners were immobilised off the US coast under a government no-sail order, leaving more than 90,000 crew stranded.

Similar risks surfaced during Russia’s invasion of Ukraine, when numerous merchant vessels were trapped in ports like Mariupol and Odesa. While marine reinsurers escaped major losses then, the corresponding aviation market suffered a severe financial blow from aircraft seizures, which Willis Re says served as a wake-up call across the industry.

Reinsurers are now introducing treaty restrictions to limit exposure to these clustered events, including geographical aggregation controls. Willis Re cites the recent drone strikes at Tuapse, a Russian Black Sea port, where multiple tankers were damaged, as a real-world example of accumulation risk materialising.

Even though some affected vessels were part of the so-called “shadow fleet” circumventing sanctions, Willis Re notes that many of them remain indirectly covered through international reinsurance channels, exposing global markets to unexpected liabilities.

Another concern, according to Willis Re, is the imbalance in war risk premium pools. As vessels reroute away from high-risk areas like the Red Sea, fewer premiums are collected along the original routes, reducing the funds available to absorb potential losses. The firm cautions that a single major loss could easily exceed the total premiums written for those regions, making pricing sustainability a critical issue.

On the cyber front, Willis Re observes that most reinsurers have now moved to exclude conflict-related cyber operations altogether. It points to the Lloyd’s Market Association’s LMA5630 clause, which removes protection for cyberattacks tied to warfare or state-sponsored disruption, a standard that many treaties have since adopted.

Despite these mounting complexities, Willis Re reports that the wider marine insurance market is softening. New capital continues to enter through managing general agents and facilities, driving down rates even in the face of heightened global risk. Losses from recent conflicts have, for the most part, remained within manageable limits, and the firm anticipates competitive conditions heading into the 2026 renewal season.

Yet, Willis Re concludes, the stability of past decades is gone. The reinsurance industry must now contend with a world where war, cyber aggression, and sanctions exposure interact in unpredictable ways. As reinsurers adapt their models to account for environmental changes, political volatility, and clustering risk, Willis Re warns that the coming renewals will be marked by both competition and caution.

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The move aligns with MSIG’s strategic growth ambitions and aims to enable the carrier to underwrite Protection & Indemnity (P&I) risks directly from its Singapore office.

Through this partnership, the pair will deliver a cohesive and robust suite of marine insurance capabilities. The integrated approach reflects the shared commitment to supporting brokers and clients, with forward-looking solutions that evolve in step with the maritime industry’s changing demands.

There has been a growing demand for comprehensive P&I solutions as regulatory frameworks get more intricate and the maritime risk landscape continues to evolve, making the segment increasingly central to marine risk management.

According to the International Union of Marine Insurance (IUMI), the global marine and offshore energy insurance market is valued at approximately $39 billion in gross written premium, representing about 1% of the global non-life insurance market, with Asia-Pacific contributing nearly 30%.

According to IUMI member data and market intelligence compiled by Axco, in 2024, it was reported that Asia’s P&I segment, which is valued between $1-1.5 billion, around 25% of the global P&I market. The region is projected to grow to approximately $200 million by 2030.

Mack Eng, Chief Executive Officer, MSIG Singapore, commented, “Our strategic collaboration with MSIG Specialty Marine marks a transformative step forward in redefining our marine insurance proposition.

“With the integration of Protection & Indemnity offerings and specialised services, our Singapore operations are primed to deliver comprehensive coverage and operational excellence to our clients. This positions us to fully capitalise on Asia’s dynamic maritime expansion, especially as Singapore reinforces its stature as a premier regional hub for both insurance and shipping.”

Edwin Tan, Head of MSIG Specialty Marine, Singapore, added, “Singapore has long been a strategic anchor for our business. As a trusted partner of MSIG Singapore, we bring together leading marine insurance experts with deep local knowledge and global insights. This powerful synergy enables us to deliver fast, precise and specialised service throughout Asia-Pacific, home to some of the world’s most dynamic trade corridors and thriving intra-Asian commerce.”

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While initial estimates placed the potential cost as high as $2-3 billion, a market consensus around $1.5 billion emerged by the fourth quarter of 2024, shaping expectations for the January 1, 2025, renewals.

As the collapse happened just ahead of the 1.4.2024 renewals, its impact was not immediately reflected in pricing. Due to the closeness to renewal dates and initial uncertainty about the loss, the event was not factored into the renewal cycle, Howden analysts note.

Despite the scale of the disaster, the overall impact on market pricing was moderate, Howden noted.

The 1.1.2025 renewals saw a gradual risk adjusted softening between flat to -10%; whereas without the Baltimore event, pricing may have declined further.

Richard Miller, Managing Director, Specialty Reinsurance at Howden Re said: “While the loss acted as a stabilising force in an otherwise softening market, it did not trigger the widespread hardening that some anticipated.

“A combination of new entrants into the marine space, competitive pressures, and strong prior-year profitability allowed the market to absorb the loss without a significant correction. Rates at 1.4.25 followed a similar trajectory to what we observed at 1.1.2025, with a continuation of a downward trend.”

While the broader market absorbed the impact gradually, the secondary market, where Howden Re plays a significant role, experienced a more immediate reaction.

The International Group of P&I Clubs placement saw notable rate increases across all layers. Similarly, facultative placements, which often mirror original pricing, in some instances rose considerably higher than initial rate movements, regardless of their structure.

Miller noted: “This is where we saw the most immediate impact. Despite rate hikes, these deals continued to be placed, reflecting sustained demand for spreading exposure. This underscores the resilience of the secondary market in adjusting pricing to reflect emerging risk realities.”

The limited pricing reaction to the Baltimore Bridge collapse raises the question, if an event of this scale did not drive a hard market, what would?, Howden highlighted.

Miller stated: “A few years ago, a loss of this magnitude would have hardened the market. The difference today is the level of competition – there are simply more players competing for a finite book of business, diluting the impact of individual loss events.”

Howden analysts keep questioning if multiple significant losses or a single larger-scale event could force a hardening?, to which Miller commented: “There is more capacity than ever looking to expand, and the industry’s ability to absorb these losses – while keeping rates relatively stable – remains a key factor in mitigating widespread market correction.”

Historically, large-scale pollution events and catastrophic loss of life have been key drivers of market hardening. While the Baltimore Bridge collapse represents a major insured loss, the absence of these two factors limited its ability to instigate a broader market correction, Howden explains.

Analysts suggest that a major environmental disaster, particularly in US waters, or a large-scale casualty event could have a far more significant impact on market trajectory.

Looking ahead, the Baltimore Bridge collapse is undoubtedly a “long-tail loss,” with the final settlement process expected to take years. Marine liability claims are known for their extended resolution periods, with the ongoing 2019 Golden Ray claim as an example.

The complexity of such events, encompassing legal fees, multiple claimants, investigations, and regulatory factors, contributes to these protracted timelines.

However, this loss differs from past events, Howden notes. Unlike the Costa Concordia in 2012, where logistical and legal delays drove costs significantly higher, the US Army Corps of Engineers completed the Baltimore bridge wreck removal within weeks, avoiding prolonged complications.

“While claims from surrounding businesses remain a factor, the originally estimated $360 million loss of revenue during the rebuild period was significantly offset by increased toll revenues from neighbouring bridges and is now more likely to be in the region $50m – $100 million,” Miller explains. “This loss, while significant, is relatively clean in terms of known liabilities.”

Additionally, according to the report, there is potential for the State of Maryland to bear some responsibility for a portion of the rebuild costs, given prior recommendations to update the bridge’s structure were not implemented, could influence discussions regarding liability.

Howden concludes: “Ultimately, the Baltimore Bridge collapse acted as a speed-bump on softening rates, but did not reverse the broader trend. The collapse, while substantial, highlights the complexities of marine liability claims and reinforces the importance of adaptability in a market increasingly shaped by emerging risks and the strategic role of the secondary market.”

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This agreement secures a 5% placement on the primary layer of the IGPIA’s $3.1 billion excess-of-loss reinsurance contract, the largest reinsurance programme globally in the marine liabilities market. Notably, this is the first private placement in the IGPIA’s history to be written in Lloyd’s.

The International Group of P&I Clubs (IGPIA) is a collective of 13 mutual insurance associations, or “clubs,” that provide protection and indemnity (P&I) insurance to around 90% of the world’s ocean-going tonnage. Its role is critical in offering reinsurance coverage for risks faced by global shipping and maritime operators.

In 2023, The Fidelis Partnership achieved a significant milestone by becoming the first Managing General Underwriter/Agent (MGU/A) to gain counter party approval from the IGPIA. This recognition highlights Fidelis’s strong capabilities in underwriting complex marine risks.

The announcement builds on the momentum of The Fidelis Partnership Syndicate’s launch in 2024, which also marked the return of Fidelis Partnership’s founder and CEO, Richard Brindle, to the Lloyd’s market after a 26-year absence.

Daniel O’Connell, Active Underwriter at The Fidelis Partnership Syndicate, added: “We are delighted to be supporting the IGPIA on its prestigious reinsurance programme and to be writing this business in the Lloyd’s market.

“The IGPIA is renowned for its rigorous assessment of carriers’ reputation, financial strength and deep understanding of the underlying risks – making this landmark placement a further testament to The Fidelis Partnership’s underwriting track record and to the high value placed by clients on the strong credit quality, marine insurance heritage and value-add represented by Lloyd’s.”

Mike Hall, Chair of the IG’s Reinsurance Committee, said: “The IG has maintained a longstanding relationship with The Fidelis Partnership, who have been strong supporters of the IG’s programme for many years. This placement further strengthens that relationship.”

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Following the collapse of the Francis Scott Key Bridge and subsequent disruption at the Port of Baltimore, Marsh created this insurance facility.

It is specifically designed to cover loss of revenue caused by third-party accidents such as a vessel sinking in a channel, a vessel collision leading to a waterway closure, or a natural catastrophe.

This coverage can be purchased independently or used to supplement existing policies.

Louise Nevill, Chief Executive Officer, UK Marine, Marsh Specialty, said: “Port blockages around the world are increasing with frequency and severity, and are resulting in debilitating consequences for businesses involved in international trade.

As global trade continues to expand, this new facility offers clients a rapidly available layer of insurance cover to protect operations and recovery in the event of port and terminal disruptions.”

The facility is backed by a panel of Lloyd’s of London and London market A+ rated insurers, and initially offers capacity of $50 million, with the possibility of higher limits on a case-by-case basis.

Port blockage is a growing concern for businesses operating in the maritime industry and can result in significant disruptions to global supply chains and loss of revenue, according to Marsh.

The facility’s terms can be customised to meet the specific needs of individual clients, allowing coverage to be tailored to particular risk exposures and operational requirements.

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HMA has been influential in the Greek and Cypriot shipping sectors for the past 30 years. It is noteworthy for being the first marine MGA to implement the United Nations’ Principles for Sustainable Insurance.

Steve Smyth, Global Head of Marine of SiriusPoint, commented: “The partnership with Hellenic Hull offers us a fantastic opportunity to continue to build strong, long-lasting partnerships with expert managing general agents (MGA) in the Marine space.”

Symth continued: “We feel we can support and empower an experienced partner like Hellenic Hull to thrive in a marketplace where it has a long history and proven track record.

“At SiriusPoint we want to work with experienced, ambitious MGAs, helping them to excel by understanding and identifying exactly the right type of support they need from us to reach their ambitions.”

Under this partnership, SiriusPoint will supply underwriting capacity for a targeted portfolio of high-quality hull and machinery risks, as well as related coverages. SiriusPoint is rated A- (Excellent) by AM Best, S&P, and Fitch, and A3 by Moody’s.

“We are excited to announce our partnership with SiriusPoint, introducing the company to the major shipping clusters of Greece and Cyprus. SiriusPoint’s presence across Continental Europe, is coupled with its growing marine offering, and its approach to empowering MGA partners,” added Ilias Tsakiris, CEO, Hellenic Hull Management and Chair of the Ocean Hull Committee of the International Union of Marine Insurance.

“The experience of the team, the strength of SiriusPoint’s paper, and the individualised support it provides our business, will be key factors in the growth and success of our company. We look forward to a strong, enduring relationship with SiriusPoint.”

The collaboration with HMA is part of SiriusPoint’s broader strategy, which includes recent Marine MGA partnerships and investments to enhance its global marine team.

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The division will grant comprehensive access to top-rated carriers in the Lloyd’s of London market and specialised marine markets across Europe, the Middle East, Latin America, and Asia.

This unit is dedicated to crafting tailored solutions to address the distinct needs of individual clients and the complexities of their operational areas.

With a focus on managing niche and complex risks, Consilium will respond promptly to develop and implement solutions, providing crucial clarity during times of heightened uncertainty. This includes navigating increased geopolitical tensions, disruptions in supply chains, and the aftermath of events like the Baltimore Bridge collapse, considered one of the most expensive maritime incidents for insurers and reinsurers in recent history.

Noakes brings 13 years of industry experience to his new position. He joins Consilium from Price Forbes & Partners, where he worked for over nine years, most recently serving as Associate Director. Prior to that, he held positions as a Broker at various firms including Thompson Heath and Bond Limited and Colemont Insurance Brokers.

Paul Richards, Co-CEO and Managing Partner at Consilium, expresses his enthusiasm for the new launch, stating, “Broadening our range of expertise into the marine market is a natural step in our strategy to become the most inspiring independent speciality broker in the world.”

He adds, “Thomas will be a key player as we build out our division thanks to his expertise, dynamism, and strong commitment to client service. Consolidation has eroded the options left to clients and service has suffered. These are incredibly exciting times for us, as we seek to inspire marine customers through the delivery of consistently better outcomes.”

Noakes remarks, “I am very impressed with Consilium’s entrepreneurial culture which has fulfilled my desire to return to a nimble, truly independent, and client-first approach – a tradition that has been lost in the recent consolidation cycle. It has been refreshing to share the same personal values and vision along with Consilium’s desire to challenge the norm. This is an exciting time.”

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“I’ve been saying in different conversations this morning that actually the good news there is we are talking about an insured loss,” said Neal in response to a question on how concerning the Baltimore bridge catastrophe insured loss is.

The Lloyd’s CEO emphasised that the vessel, bridge, and Port Authority are all insured.

“So, I think the good news is that we can show the value of insurance on what is a complex and expensive loss, because each element of that claim will be dealt with by the insurer,” he said.

Neal went on to say that while there will undoubtedly be debates around subrogation, so who’s at fault and who should ultimately be paying the loss, this is something that the industry should be able to figure out itself.

From a Lloyd’s perspective, Neal reminded the audience that the marketplace anticipates a cost that will come from large individual risk losses or nat cat losses, explaining that the collapse of the Baltimore bridge on Tuesday is not outside of the normal levels of expectations of what the market should see in a given year.

“So, I think it’s positive. I think we can demonstrate the value of insurance through this type of loss,” he reiterated.

“And dare I say it, when we’re trying to innovate and think about new products, here we have another type of loss that impacts the supply chain. We saw the same with the Russian invasion of the Ukraine. I think I was saying to somebody earlier on that if you go back to the Thai floods in 2011 we saw the same issue. So, I think it’s an opportunity for us to show the value of insurance,” added Neal.

Given the complexity of this loss event, it will take time to be fully understood, but current estimates suggests that it could result in insured losses of more than $2 billion, which would surpass the record $1.5 billion of marine insurance losses from the capsizing of the Costa Concordia in 2012.

As we’ve discussed previously, reinsurers are expected to take on most of the total insured loss from this event.

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