Marine insurers could face billions of US dollars pay-out in claims after the
collapse of the Francis Scott Key Bridge in Baltimore, according to Lloyd’s.
The disaster occurred on 26 March when the Singapore-flagged container ship Dali hit the bridge.
The collapse has caused severe impact on the port of Baltimore, through which more than a million shipping containers pass every year.
Local officials have confirmed the port is closed to all maritime traffic until further notice.
Analysts estimate the principal elements in the claim include the replacement value of the bridge, business interruption coverage and injury and loss of life compensation to the victims or their families.
The bridge, whose estimated value is US$1.2 billion, has Chubb as its primary insurance carrier.
Experts predict that Chubb will seek subrogation, pursuing a third party that caused a loss, to recover the cost of the claim if it must pay out.
John Miklus, president of the American Institute of Marine Underwriters, says the collapse is expected to drive “one of the largest claims ever to hit the marine (re)insurance market”.
He adds: “There are various components to the loss. A big one is going to be rebuilding the bridge and all the loss of revenue and loss of tolls while that is taking place.”
Britannia, a member of the International Group of P&I Clubs, provides liability insurance for the Dali ship, operated by Maersk.
AXA XL is said to lead the first layer of coverage for the reinsurance programme for the vessel, with other global reinsurers also in the frame.
