Ajit Jain, vice chairman of insurance operations at Berkshire Hathaway, said the company could consider insuring ships transiting the Strait of Hormuz [1].

This potential move highlights the extreme volatility of maritime risk in the region. Because the Strait of Hormuz is a critical chokepoint for global oil and trade, the willingness of a massive insurer like Berkshire to enter the market could signal a shift in how war-risk insurance is priced and managed.

Speaking at the 2026 Berkshire Hathaway annual meeting in Omaha, Nebraska, Jain said the possibility of providing coverage for vessels navigating the corridor [2]. He said that the decision to provide such insurance is not a matter of simple availability but of economic viability.

"The short answer is — depends on the price," Jain said [1].

The company's hesitation stems from the high risk associated with the area, where geopolitical tensions often lead to spikes in insurance premiums. The cost of shipping insurance for vessels transiting the Strait of Hormuz could be approximately 20 times higher than prices before the war [3].

Jain did not commit to a specific timeline or a guaranteed entry into the market. He said that the pricing of war-risk insurance would be the primary factor in determining whether Berkshire finds the venture profitable [1].

Berkshire Hathaway's insurance arm is known for its disciplined approach to risk and its ability to absorb large losses, but the extreme volatility of the Hormuz corridor remains a significant deterrent unless premiums are sufficiently high [2].

“"The short answer is — depends on the price."”

Berkshire Hathaway's cautious approach reflects the broader struggle of the global insurance market to price 'black swan' risks in conflict zones. By tying their entry strictly to price, Berkshire is signaling that it will not subsidize maritime trade in high-risk areas; instead, it will only participate if the premiums accurately reflect the catastrophic potential of the corridor, potentially driving up overall shipping costs for global commodities.