Tianjin Explosion – initial report
The explosions at Tainjin in China is the largest man made catastrophe loss in many years. The estimate of insured losses continues to grow and at last account was in excess of USD3.3 billion.
Putting aside the terrible loss of life and injuries caused by the explosions, the event once again highlights two issues, accumulation risk and supply chain risk.
Aon Benfield have published an initial report on the losses which continue to grow but while the numbers may have been superseded the report does highlight the issues. I attach a copy for those interested.Event Report – Tianjin Explosion (FINAL 20150819)
Another issue not really addressed in the report is the removal of debris. The costs if done correctly /safely will be enormous.
All these issues arise, albeit it in a much smaller way in most large fire losses and should be kept firmly in mind when an insurance program is put together or reviewed.
However, as businesses import and export more, the supply chain risk needs special attention. For example, while many ISR policies are endorsed to include port blockage coverage, the standard endorsement only covers the local port and not overseas ones. The importance of a quality marine insurance program with an insurer you know and trust and importantly has also been highlighted with this event.