Cruise ship disaster could lead to insured losses of more than EUR400 million

The grounding of a luxury cruise liner off the coast of Italy could result in insured losses of up to EUR400 million (about Cdn$517 million), according to Guy Carpenter.
The Costa Concordia ran aground off the coast of Isola del Giglio, in Italy on Jan. 13, 2012. At the time of the incident, the vessel had roughly 4,000 passengers and crew aboard. As of press time, 11 deaths have been confirmed.
Carnival Corporation & plc, the owner of the ship, has insurance coverage for damage to the vessel with a deductible of approximately $30 million, as well as insurance for third party personal injury liability subject to an additional deductible of approximately $10 million for this incident, a company release says. The company self-insures for the loss of use of the vessel.
Guy Carpenter’s report says that according to industry sources, the Costa Concordia is insured for EUR405 million, with XL Group as the lead insurer. RSA and Generali also provide coverage.
The report went on to say that Hannover Re said it expects a claim of more than EUR10 million (about Cdn$13 million).
The Standard Club confirmed it is the lead P&I club providing liability coverage, with the Steamship Mutual also providing cover.