Chubb has been named as the lead underwriter for the $US20 billion ($28.71 billion) reinsurance plan to cover maritime losses in the Persian Gulf region. 

The US International Development Finance Corporation (DFC) says the insurer will issue policies for eligible vessels under efforts to resume commercial shipping in the conflict zone.

Reinsurance partners are expected to be announced soon.

“DFC’s maritime reinsurance plan combines Chubb’s premier underwriting expertise with the financial commitment of the US government,” DFC CEO Ben Black said. “We are one step closer to restoring market confidence and resuming energy and commercial trade disrupted by the conflict with Iran.”

Chubb CEO Evan Greenberg says the company is proud to lead and manage the program.

“The commerce passing through the Strait of Hormuz plays a vital role in the global economy, and providing vessels with insurance protection is essential for resuming trade flows,” he said.