To execute an active operational research project and technical assessment to rebuild overhaul and comprehensively modernize the american war risk insurance WRI program

The Maritime Administration awarded a $500,000 cooperative agreement to American Bureau of Shipping on June 12, 2026, to execute operational research and technical assessment under the Maritime War Risk Insurance program (CFDA 20.803). The work delivers three primary products: an empirical underwriting baseline modeling a capitalized mutual structure by gathering discrete underwriting data and empirical market metrics from domestic commercial leaders including the American Club, Berkley Offshore, and Arthur J. Gallagher; a financial risk architecture architecting a multi-layered capitalization tower modeled on the Oil Spill Liability Trust Fund, incorporating structural appropriations, token peacetime premiums, multi-year outward reinsurance and retrocession agreements with domestic and international markets, and a standing Treasury stop-loss credit line; and unified government handoff protocols standardizing transition terms across VISA, VTA, MSC TANKVOY, and MSC TANKTIME forms to authorize rapid handoff to state-backed cover within hours based on objective unified triggers such as market withdrawal or premium spikes of hull value. The award funds a structural, operational, and statutory blueprint to transition the current standby War Risk Insurance program into a permanent self-sustaining public-private underwriting entity, the U.S. War Risk Corporation or Mutual US WRC. The intended beneficiary is the Maritime Administration. Performance is scheduled through June 15, 2027, at Spring, Texas. No sub-recipients are listed.

The current framework relies heavily on antiquated peacetime revolving funds and labor intensive ad hoc interagency funding workarounds. This study will deliver a structural operational and statutory blueprint to transition the current standby program into a permanent self sustaining public private underwriting entity the US war risk corporation or mutual US WRC. By embedding a cadre of robust US domiciled underwriters within a permanent structure the program ensures national economic security and defense logistics independent of volatile foreign insurance syndicates. Activities to be performed empirical underwriting baseline gathering discrete underwriting data and empirical market metrics from domestic commercial leaders EG the american club berkley offshore arthur j gallagher to model a capitalized mutual structure. Financial risk architecture architecting a multi layered capitalization tower modeled on the oil spill liability trust fund. This incorporates structural appropriations token peacetime premiums layer 0 multi year outward reinsurance retrocession agreements with domestic and international markets layers 1 n and a standing treasury stop loss credit line. Unified government handoff protocols standardizing transition terms across visa VTA MSC tankvoy and MSC tanktime forms covering objective unified triggers EG market withdrawal or premium spikes of hull value to authorize rapid handoff to state backed cover within hours. Deliverables expected outcomes empirical underwriting baseline financial risk architecture and unified government handoff protocols. Intended beneficiary marad. Subrecipient activities none.