The United States will double the reinsurance capacity for the Strait of Hormuz to $40 billion.

Golden Finance reported that on April 3, the United States doubled its commitment to provide reinsurance collateral for ships willing to transit the Strait of Hormuz to $40 billion, and introduced new insurance cooperation partners, including American International Group and Berkshire Hathaway. Last month, the U.S. International Development Finance Corporation (DFC) announced a $20 billion reinsurance program. The agency said today that Travelers Insurance, Liberty Mutual Insurance, Berkshire Hathaway, American International Group, Starr, and CNA, together with Chubb Insurance, will provide an additional $20 billion in reinsurance support for its maritime facilities. DFC Chief Executive Officer Ben Black said in the statement: “These leading U.S. insurance companies bring deep underwriting experience in marine and marine war insurance, strengthening our efforts to restore confidence in maritime trade.” The agency also said it will determine, together with its insurance partners, which ships are eligible for reinsurance. To be eligible, applicants must provide information including the vessel’s port of departure and destination, the major beneficial owners and their locations, the cargo owner and its location, and information about the lenders that provide financing for the vessel.