U.S. DFC to reinsure maritime losses in the Gulf of up to $20bn on a rolling basis

The United States (U.S.) International Development Finance Corporation (DFC) and the U.S. Treasury have unveiled a plan to deploy Maritime reinsurance, including war risk, in the Gulf region, which has been approved by President Trump.

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.”