Reinsurance broker Guy Carpenter has released details of the total cost of damage and losses of the Tianjin Port blast, stating that it could cost between US$1.6 billion and $3 billion to cover the extent of losses, according to IHS Maritime 360.
In a previous article by PTI on the Tianjin blast, it was reported that the total cost would reach just over $1 billion, but this amount has risen significantly, presumably due to the number of assets that were engulfed in flames during the incident.
A spokesman for Guy Carpenter said: “Property damage claims will form the major part of overall insured loss, which includes property and content losses at and near the blast site, arising from mostly commercial property policies, as well as thousands of new motor vehicles parked near the site, which were damaged by fire or explosion.
“Business interruption loss forms a large part of the uncertainty surrounding the ultimate loss for the insurance industry in this incident. On the marine cargo side, it will take time for claims arising from damaged shipping containers to be reported and inspected by insurance companies. Besides property, motor, and marine cargo losses, to a lesser extent some liability, personal accident and life claims will arise from the incident.”
The death count is now up to around 159 people, with an estimated 800 injured. The cause of the blast is still unknown but the cause is said to be due to the detonation of a shipment of explosives.