Lloyd’s Market Engaging With US on Gulf Maritime Plan, Officials Say

The Lloyd’s of London market is engaging with the U.S. government’s International Development Finance Corporation over a plan to provide political risk insurance and guarantees for maritime trade in the Gulf, Lloyd’s market officials said on Thursday.

“Lloyd’s is engaging constructively with the U.S. Development Finance Corporation and relevant stakeholders, with a clear focus on ensuring that the Lloyd’s market continues to lead as the global center of excellence for war risk insurance,” a Lloyd’s spokesperson said.

Related: Lloyd’s Market Engaging With US on Gulf Maritime Plan, Officials Say

The Lloyd’s Market Association (LMA), which represents the interests of all underwriting businesses in the Lloyd’s market, welcomed the engagement of U.S. President Donald Trump, its CEO Sheila Cameron said separately in a statement on Thursday.

“Since Sunday 1 March, there have been at least 40 transits of vessels through the Strait of Hormuz.

“There remain approximately 1,000 vessels, approximately half of which are oil and gas tankers, with an aggregate hull value exceeding $25 billion in the Persian/Arabian Gulf and surrounding waters,” Cameron said, citing data.

Cameron added that the vast majority of these vessels were insured in the London market and insurance “currently remains in place.”

Insurance broker Marsh said on Wednesday it had met with U.S. officials to explore solutions for restoring maritime trade.

The U.S. Navy could begin escorting oil tankers through the Strait of Hormuz if necessary, Trump said on Tuesday, adding he had ordered the International Development Finance Corporation to provide political risk insurance guarantees for maritime trade in the Gulf.

Earlier this week, London’s marine insurance market widened the area in the Gulf it deems as high risk as the conflict in the Middle East escalates.

(Reporting by Saul and Baertlein; Editing by Emelia Sithole-Matarise)