Insurers could face losses of up to $4 billion after Baltimore bridge tragedy, analyst says
Source: Reuters
LONDON, March 27 (Reuters) - Baltimore's Francis Scott Key Bridge collapse could cost insurers billions of dollars in claims, analysts say, with one putting it at as much as $4 billion, which would make the tragedy a record shipping insurance loss.
Six people are still missing after a collision with a Singapore-flagged container ship destroyed the landmark bridge on Tuesday, forcing the closure of one of the busiest U.S. ports.
With little clarity on when the Port of Baltimore would re-open, insurers and analysts are now assessing the likely losses borne by underwriters across several product lines including property, cargo, marine, liability, trade credit and contingent business interruption.
"Depending on the length of the blockage and the nature of the business interruption coverage for the Port of Baltimore, insured losses could total between $2 billion and $4 billion," said Marcos Alvarez, managing director for global insurance ratings at Morningstar DBRS. That would surpass the record insured losses of the Costa Concordia luxury cruise liner disaster in 2012, he said.
Read more: https://www.reuters.com/business/insurers-brace-multi-billion-dollar-losses-after-baltimore-ship-tragedy-2024-03-27/
mucifer
(23,548 posts)gfwzig
(139 posts)the shipping company should pay for the entire cost of reconstruction ,,, and the losses incurred as a repercussion,,,,, if they cannot pay then dissolve them and burn the ships, do not fire sale the assets to a competitor...
EX500rider
(10,849 posts)If they cannot pay selling the ships seems like it'd be a better idea, although they have insurance so it's going to be the insurance company's problem isn't it, that's why they've been paying premiums since the beginning of time
Oopsie Daisy
(2,631 posts)RobinA
(9,893 posts)insurer, too whom they have probably paid gazillions against just such a problem, just gets to invest the premiums?
former9thward
(32,017 posts)They will raise rates to cover the losses. The companies getting the raised rates will raise prices to their customers to cover the new rates. So ultimately the whoever buys the products will pay for it.
LiberalFighter
(50,942 posts)republianmushroom
(13,611 posts)FakeNoose
(32,641 posts)Plus the Baltimore traffic will be delayed and rerouted for over a year. Probably several years. Who will reimburse drivers the costs for all of that mess?
Isn't this what insurance is really for?
Igel
(35,317 posts)Rebuilding will take a while.
And that's after we have blueprints and all the environmental statements are drawn up and permitting requirements met. I'm sure many will be waived for this particular project because that's where eyes will be focused. But all the rules and regulations and requirements prior to putting the first metaphorical shovel into metaphorical dirt will take a bit of a bureaucratic tussle.
The no-slo-de-growth lilliputians win over the much larger gulliver. Because safety and caution.