Topic: Reinsurance

The U.S. government has expanded its reinsurance program to $40 billion through the Development Finance Corporation (DFC) to support tankers sailing through the Strait of Hormuz. This program aims to normalize insurance rates that skyrocketed at Lloyds of London due to the conflict. Officials state the U.S. government intends to make a profit on these insurance premiums while encouraging continued maritime trade.

The U.S. Treasury Department reportedly spent a year planning a "maximum pressure" campaign that led to the collapse of the Iranian financial system in December. Scott Bessent highlighted the Development Finance Corporation's Maritime Reinsurance Program as a key tool for securing shipping in the Gulf region. The administration claims these financial lifelines were cut off systematically before military action was initiated.