The two massive explosions which hit China’s Port of Tianjin last month could generate insurance losses of up $3.3 billion, according to a report published by Guy Carpenter.
The report estimates damages between $1.6 billion and $3.3 billion, which could more than double early estimates released by Credit Suisse of $1 billion to $1.5 billion.
“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,” said James Nash, CEO of Asia Pacific Operations for Guy Carpenter.
The fireball and shock wave from the explosions blasted shipping containers and incinerated vehicles in the port and on an adjacent highway overpass, the report noted. In addition, warehouses, production facilities and dormitories were destroyed, while the Donghai Road Railway Station was damaged and windows were blown out in residential buildings within a radius of several kilometers.
While access to the site is limited, Guy Carpenter used its satellite-based catastrophe evaluation service – CAT-VIEW – to analyze pre- and post-event satellite high-resolution imagery to determine the extent of the losses.
The report outlines the complexity of the event from an insurance and reinsurance perspective and provides a preliminary estimate of insured losses from many classes including: containers; cargo in containers; property; automobiles; and general aviation.
Source: Guy Carpenter & Company