Insurers bracing for multi-billion dollar claims on Baltimore Bridge

Insurers are facing potential claims totaling up to $3 billion following the collapse of the Francis Scott Key Bridge in Baltimore. Analysts from Barclays have identified companies in the Lloyd’s of London market as being most at risk, with insurance claims for the bridge damage alone estimated at $1.2 billion. Additional liabilities of $350 million to $700 million are expected for wrongful death and business interruption due to the port being blocked.

The bridge collapsed after being struck by a container ship, resulting in vehicles falling into the water and disrupting operations at a critical East Coast port. Insurance risk will be distributed across companies through syndication, with AXA XL leading the policy. Other major reinsurers in the transportation sector, such as Hannover Re, Swiss Re AG, Munich Re, and RenaissanceRe, are also expected to be impacted.

Analysts warn that smaller reinsurers in the London market could be more exposed due to Lloyd’s of London’s significant holdings. The incident is still under investigation, but analysts believe it has the potential to result in a substantial insurance claim, particularly within the shipping market. The collapse of the bridge has raised concerns about the extent of the damage and the impact on insurance companies.

Source .