Finance
Lloyd’s market engaging with US government over gulf maritime plan, officials say
Published by Global Banking & Finance Review®
Posted on March 5, 2026
2 min readLast updated: March 5, 2026
Quick Summary
Lloyd’s of London, via the Lloyd’s Market Association (LMA), is working with the U.S. International Development Finance Corporation to secure political risk insurance and guarantees facilitating maritime trade in the Gulf amid sharply reduced vessel transits through the Strait of Hormuz.
Lloyd’s Works with US Government to Secure Maritime Trade Insurance in Gulf
Collaboration Between Lloyd’s and US Government to Enhance Maritime Insurance Security
Engagement with International Development Finance Corporation
LONDON, March 5 (Reuters) - 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 centre of excellence for war risk insurance," a Lloyd’s spokesperson said.
Lloyd’s Market Association and Stakeholder Reactions
LMA’s Support and Market Overview
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.
Vessel Transits and Insurance Coverage
"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".
Broker and Government Initiatives
Insurance Broker Marsh’s Involvement
Insurance broker Marsh said on Wednesday it had met with U.S. officials to explore solutions for restoring maritime trade.
US Navy and Political Risk Insurance Guarantees
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.
Market Response to Escalating Conflict
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 Credits
(Reporting by Jonathan Saul and Lisa Baertlein; Editing by Emelia Sithole-Matarise)
Key Takeaways
- •Lloyd’s market seeks to reinforce London’s leadership in war‑risk insurance with U.S. government guarantees.
- •Since March 1, vessel transits via the Strait of Hormuz have collapsed—down 81–86 %—leaving hundreds of oil/gas tankers stranded in the Gulf with hull values over $25 billion.
- •U.S. President Trump has authorized political risk insurance via DFC and offered naval escorts to restore maritime trade through the strait.
Frequently Asked Questions about Lloyd’s market engaging with US government over Gulf maritime plan, officials say
1What is Lloyd’s of London’s role in Gulf maritime insurance?
Lloyd’s is collaborating with the US government to provide political risk insurance and guarantees for maritime trade in the Gulf region.
2How many vessels are currently at risk in the Persian/Arabian Gulf?
Approximately 1,000 vessels, about half of which are oil and gas tankers, are present in the Gulf and surrounding waters.
3Who insures most of the vessels in the Gulf region?
The vast majority of these vessels are currently insured in the London market.
4What recent changes have occurred in the marine insurance market?
London’s marine insurance market has recently widened the area deemed high risk in the Gulf due to escalating conflict.
