U.S. DFC unveils $20BN plan for maritime reinsurance in the Gulf

DFC CEO Ben Black: “We are confident that our marine reinsurance plan will get oil, gasoline, LNG, jet fuel, and fertilizer through the Strait of Hormuz and flowing again to the world.”

U.S. International Development Finance Corporation (DFC) CEO Ben Black and U.S. Treasury Secretary Scott Bessent on Friday,announced agreement on a detailed implementation plan, approved by President Trump, to deploy mritime reinsurance, including war risk, in the Gulf region. In close coordination with CENTCOM, they said, this plan will restore confidence in maritime trade, help stabilize international commerce, and support American and allied businesses operating in the Middle East during the conflict with Iran.

The DFC announcemenet marks a key milestone toward the rapid implementation of President Trump’s March 3 directive to utilize DFC’s innovative financial toolkit to safeguard the continued flow of trade.

In its most recent update on the situation Windward AI notes that, “following the escalation of hostilities, several major Protection & Indemnity (P&I) insurers issued 72-hour cancellation notices on Gulf war-risk coverage, while reinsurance capacity from London markets was temporarily withdrawn. Without reinsurance backing, P&I clubs are unable to extend coverage for vessels operating in designated war zones…This mechanism has produced a de facto closure effect across the Strait.”

DFC was established through the BUILD Act with bipartisan support during President Trump’s first term, building on the need for increased private sector investment in emerging markets, enhancing U.S. global economic leadership, and countering China’s presence in strategic regions.

“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 stabilize international markets. Working alongside CENTCOM, DFC coverage will offer a level of security no other policy can provide,” said DFC CEO Ben Black.

Maritime reinsurance details:

• DFC reinsurance facility will insure losses up to approximately $20 billion on a rolling basis.
• This revolving insurance offering will apply only to vessels that meet the criteria.
• Insurance will focus on Hull & Machinery and Cargo to start.
• DFC has identified best-in-class, preferred American insurance partners.
• DFC and Treasury are coordinating closely with CENTCOM on next steps in the implementation of this plan.

DFC will continue to provide additional information as it becomes available. Businesses and financial institutions seeking access to DFC’s Maritime Reinsurance product should contact DFC directly at [email protected].