Two massive explosions that hit China’s Port of Tianjin could generate insurance losses of up $3.3 billion, according to a Guy Carpenter & Company report.
The report estimated damage to cost between $1.6 billion and $3.3 billion, which was more than than double early estimates released by Credit Suisse.
According to the report, the fireball and shock wave from the explosions blasted shipping containers, and incinerated vehicles in the port and on an adjacent highway overpass.
In addition, it also destroyed warehouses, production facilities and dormitories, affected the nearby Donghai Road Railway Station, and blew out windows of residential structures within several kilometers.
James Nash, CEO of Asia Pacific operations at Guy Carpenter, commented: “The explosions that occurred in Tianjin, China are likely to constitute one of the largest insured man-made losses to date in Asia and will certainly be considered one of the most complex insurance and reinsurance losses in recent history.”
While access to the site is limited, Guy Carpenter used its satellite-based catastrophe evaluation service, CAT-VIEW, to analyse pre- and post-event satellite high-resolution imagery to determine the extent of the losses.
