PCS designates Baltimore bridge collapse incident under its Global Marine & Energy solution

Property Claim Services (PCS), a division of Verisk, has designated the Baltimore Bridge collapse incident, caused by the container ship Dali striking one of its support columns, under its Global Marine & Energy product.

Image source: EPA

The division’s process for estimating losses initiates when PCS anticipates insured losses surpassing the $100 million threshold due to an event.

AM Best, the ratings agency, also foresees insured losses exceeding this threshold, projecting costs to likely reach into the “billions of dollars”, suggesting that reinsurers “will bear the bulk of the insured cost.”

In response, PCS has released an event designation bulletin containing essential event details such as location, probable cause of loss, event type, and other pertinent information.

As the situation unfolds, PCS will continue to provide ongoing reports on insurance industry losses related to marine and energy lines.

This entails issuing quarterly updates comprising preliminary loss estimates until PCS deems the estimate stable, based on feedback from companies supplying underlying loss data to PCS.

Currently, the expectation is that the event will become the record marine insurance industry loss, surpassing the $1.5 billion driven by the sinking of the Costa Concordia in 2012.

While reinsurers are poised to assume the bulk of the ultimate loss, it’s expected to be a manageable event for players, and have a limited impact on reinsurer earnings.

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