Cargo Business Newswire

Wednesday, September 30, 2015

Tianjin blasts likely to boost costs to insurers

Chemical contamination is likely to increase the cost to insurers of last month's blasts in the Chinese port of Tianjin, costs that are already expected to exceed $3 billion, insurance specialists say.

While Chinese insurers are likely to bear the burden, global insurers and reinsurers are also expected to set aside reserves for the quarter ending in September to cover any payouts for the Aug. 12 explosions, which killed more than 160 people.

Zurich Insurance said last week a $275 million loss

from Tianjin was partly responsible for the decision to pull the plug on its $8.5 billion bid for rival RSA.

Reinsurance broker Guy Carpenter has said so-called insured losses from the blasts could be as much as $3.3 billion, based on satellite images of how buildings, cargo, containers and property around the port were hit. However, the estimates do not include contamination cleanup costs.

For more of the Reuters story: www.reuters.com