Beazley to launch marine war consortium in response to Strait of Hormuz situation

Beazley has announced its intention to launch a new marine war consortium in response to evolving situation in and around the Strait of Hormuz.

The US military enforced a blockade on all Iranian ports in the Strait after no agreement was reached during ceasefire talks last weekend.

Beazley said the new consortium is designed to support the maritime sector with additional war insurance capacity as it deals with a complex and evolving situation in and around the Strait.

Adrian Cox, chief executive at Beazley, said: “I’m proud that the marine market, in which we are a leader, continues to play a vital role in maintaining continuity of trade amidst ongoing conflict.

“This consortium demonstrates the agility of the market to respond to the needs of global supply chains and I’m pleased that under Beazley’s leadership we have been able to swiftly coalesce our market’s combined expertise to deliver a highly specialist solution that will assist in keeping global trade moving.”

Consortium details

The consortium would provide up to $1bn of Lloyd’s capacity, comprising $500m for hull war and the same amount for cargo war.

The consortium will be offered to vessels and their cargoes whilst transiting the Strait. Coverage will be in line with Beazley’s risk appetite and in compliance with all global sanctions. 

Patrick Tiernan, chief executive at Lloyd’s, said: “I welcome the launch of this timely and pragmatic Beazley-led consortium. While insurance continues to be available for ships transiting the region, it is pragmatic to have facilities in place for changes in demand in the future.

“The consortium demonstrates the Lloyd’s model at its best. Capital and expertise aligning, not only to address immediate pressures, but to anticipate future requirements.”