World Business Report Could a $20 billion dollar insurance scheme get more Hormuz ships moving?
Mar 11, 2026
Gloria Guevara, CEO of the World Travel & Tourism Council, on how airspace closures are wrecking regional travel and tourism. Michelle Fleury, BBC North America business correspondent, on a proposed $20bn insurance push to get tankers through the Strait of Hormuz and why insurers pulled back. They discuss market reactions, operational insurance limits, and the wider economic ripple effects.
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Reinsurance Scheme Lowers Cost But Leaves Coverage Gaps
- The $20bn reinsurance scheme aims to reduce cost barriers by offering war risk cover for ship hulls, machinery and cargo with the DFC as a financial backstop.
- Michelle Fleury explains insurers face multiple layered policies and this plan currently covers only the ship, not cargo or crew, leaving coverage gaps.
Higher Insurance Costs Are Halting Tankers
- Insurance cost spikes and war-specific journey policies are driving tankers to avoid the Strait of Hormuz despite proposed US-backed reinsurance.
- Fleury notes Lloyd's war journey policies exist but are far more expensive, so financial backstops may not be sufficient.
Crew Safety, Not Just Money, Determines Voyages
- Financial relief doesn't remove personal safety concerns for crews; captains may refuse voyages even if insured.
- Michelle Fleury highlights recent attacks on tankers as a key deterrent to crewing ships through the strait.