Bridge tragedy could see record hit for insurers
STORY: The collapse of Baltimore’s Francis Scott Key Bridge looks set to leave insurers facing a big hit.
One industry analyst says claims could go as high as $4 billion.
That would be a record for any shipping insurance loss.
It would surpass the previous record, set when the luxury cruise liner Costa Concordia overturned in 2012.
Investigators are now probing exactly what happened to cause the Baltimore incident, which has left at least six people presumed dead.
But there is little clarity on when the port there can reopen, meaning potential insurance losses continue to pile up.
That covers everything from repairs to the bridge and the ship that hit it, to the impact of the port closure on businesses.
Initial estimates say rebuilding the crossing could cost $600 million.
The state of Maryland could see a loss of $28 million if the port is shut for a month.
An industry insider said AXA, Aon and Chubb were among insurers that would be involved.
It’s thought the hit to any one insurer will be limited, however, as they in turn cover themselves with reinsurance spread across numerous providers.
But the disaster could spell trouble for ship operators, with some experts saying it may mean a global rise in marine insurance costs.
