The Indian government is reportedly considering a $1.5 billion fund to provide reinsurance cover to Indian vessels travelling through conflict zones, such as the Strait of Hormuz, which remains effectively closed to most international shipping due to the ongoing Iran conflict.
Reports indicate that the fund is intended to encourage insurance companies to provide coverage for Indian vessels in conflict-affected waters, with the reinsurance facility expected to support insurers in managing the sharply higher costs during this period.
The reports, which cited two senior government officials, noted that GIC Re will likely manage the fund, which will complement measures already announced by the Reserve Bank of India and the Directorate General of Foreign Trade to support sectors affected by the Iran conflict.
Under the expanded structure, Chubb and the newly announced partners will contribute an additional $20 billion in capacity alongside the existing $20 billion in rolling coverage, increasing the total Maritime Reinsurance facility to $40 billion.
