MARINE INSURERS BRACE FOR MAJOR BEIRUT EXPLOSION LOSS

Marine insurers are gearing up for what is likely to prove one of the most expensive insured cargo and port infrastructure losses ever, on a scale at least as large as the one resulting from the explosions at the Chinese port of Tianjin in 2015. The explosions in China’s Tianjin port were the largest man-made insurance loss on record in Asia, with Swiss Re estimating the cost to the industry at as much as $3.5bn. The ignition of 2,750 tonnes of ammonium nitrate warehoused after being confiscated from a Moldovan-flag bulk carrier in 2013 is emerging as the most likely cause of the blast that devastated the port area of Beirut on August 5, resulting in massive loss of life and many injuries. However, marine insurance sources stressed such a conclusion is preliminary at this stage, pending proper investigation.