“Reinsurers will bear the bulk of the insured cost of the collapse of the Francis Scott Key Bridge in Baltimore,” said Mathilde Jakobsen, senior director, analytics, AM Best, in a statement.

Jakobsen said that liability cover for 90 percent of the world’s shipping vessels is provided by members of the International Group of P&I Clubs. “As part of the International Group’s pooling arrangements, member clubs mutually reinsure each other by sharing claims above US$10 million. Additionally, the group buys general excess of loss (GXL) reinsurance cover up to US$3.1 billion in the open market,” she said.

The total cost of the bridge collapse and associated claims will likely be in the billions, Jakobsen said, “well above the US$100 million attachment point for the GXL contract.” She noted that losses could involve lines such as property, cargo, liability, trade credit and contingent business interruption. “The claim will likely involve several insurers, reinsurers, subrogation and legal issues, and will serve to add to the increasing challenges in reinsurance availability,” she said.