September 4, 2015 by Canadian Underwriter
The Port of Tianjin explosions in China are set to become one of Asia’s largest insured man-made loss events, with potential losses of between US$1.6 billion and US$3.3 billion, global risk and reinsurance specialist Guy Carpenter & Company, LLC said in a new report released on Thursday.
The Port of Tianjin Explosions report from Guy Carpenter, a wholly-owned subsidiary of Marsh & McLennan Companies, provides initial loss estimates and outlines the many variables involved in assessing the losses emanating from the two massive initial explosions that occurred at the Port of Tianjin on Aug. 12.
“The explosion that occurred in Tianjin, China are likely to constitute one of the largest insured man-made losses to date in Asia and will certainly be considered one of the most complex insurance and reinsurance losses in recent history,” said James Nash, CEO of Asia Pacific operations for Guy Carpenter, in a press release. [click image below to enlarge]
The fireball and shockwave from the explosions blasted shipping containers, incinerated vehicles in the port and on an adjacent highway overpass, destroyed warehouses, production facilities and dormitories, impacted the nearby Donghai Road Railway Station and blew out windows within residential structures for several kilometres, Guy Carpenter said.
While access to the site is limited, CAT-VIEW – Guy Carpenter’s satellite-based catastrophe evaluation service – was able to utilize high resolution pre- and post-event satellite imagery to understand what exposures were present at the time of the blast and therefore could contribute to the loss, the release noted.
The report outlines the complexity of the event from an insurance and reinsurance perspective and provides a preliminary estimate of insured losses from many classes including: containers, cargo in containers, property, automobiles and general aviation.
— China Xinhua News (@XHNews) September 4, 2015