Ajit Jain said Berkshire Hathaway would consider insuring ships and tankers in the Strait of Hormuz if the pricing is appropriate.
This potential move signals a calculated willingness by one of the world's largest insurance providers to engage with high-risk maritime corridors. Because the Strait of Hormuz is a critical chokepoint for global oil shipments, any shift in insurance availability can influence shipping costs and regional economic stability.
Speaking at the 2026 [1] Berkshire Hathaway annual meeting, Jain, the company's chief insurance officer, addressed the specific risks associated with the region. He said the decision to provide coverage is not absolute and "depends on the price."
Jain said Berkshire is not operating independently in this venture. He said, "Berkshire is participating with a group of insurers in insuring oil tankers in the Strait of Hormuz."
Despite this participation, the company has not yet active operations in the area. Jain said that no business has been done yet, but Berkshire will have small exposure to an insurance consortium.
This cautious approach allows the company to maintain a footprint in the maritime insurance market without risking significant capital. The use of a consortium distributes the risk among multiple insurers, a standard practice for volatile geopolitical zones.
Jain's comments highlight the ongoing tension between the high premiums available for high-risk zones and the actual threat of loss. By limiting exposure and requiring a specific price point, Berkshire aims to balance potential profit against the volatility of the region.
“"Depends on the price,"”
Berkshire Hathaway's cautious entry into the Strait of Hormuz insurance market reflects a broader strategy of risk mitigation. By utilizing a consortium and demanding high premiums, the company avoids direct, heavy exposure to geopolitical volatility while remaining positioned to profit from the essential nature of oil transit. This indicates that while the region remains high-risk, there is still a commercial appetite for coverage provided the financial incentives outweigh the potential for loss.
