Cargo Losses from Tianjin Explosions Will Hit At Least $1.5 Billion

LONDON, Sept 15 (Reuters) – Explosions within the Chinese port of Tianjin final month would result in cargo losses of at the least $1.5 billion, and have been having a “significant impact” on the marine insurance coverage sector, a commerce physique mentioned on Tuesday.

“We are expecting to see cargo losses of at least $1.5 billion, with some reports stating that the final figure could be as high as $6 billion,” Nick Derrick, chairman of the International Union of Marine Insurance’s cargo committee, mentioned in an announcement.

The incident ought to present a “substantial wake-up call to all cargo insurers”, he added.

Reinsurance dealer Guy Carpenter, a unit of Marsh & McLennan , mentioned earlier this month that insurance coverage losses for buildings, cargo, containers and property because of the explosions might whole as much as $3.3 billion.

Credit Suisse had estimated losses of between $1 billion and $1.5 billion days after the blast in August.

(Reporting by Carolyn Cohn)

(c) Copyright Thomson Reuters 2015.