(Reuters) — The collapse of Baltimore’s Francis Scott Key Bridge is likely to lead to a multibillion-dollar insurance loss, the chairperson of Lloyd’s of London said Thursday.
The massive Singapore-flagged container ship Dali sailing out of Baltimore Harbor bound for Sri Lanka reported losing power and the ability to maneuver before plowing into a support pylon of the bridge on Tuesday.
The impact brought most of the bridge tumbling into the mouth of the Patapsco River, blocking shipping lanes and forcing the indefinite closure of the Port of Baltimore, one of the busiest on the U.S. Eastern Seaboard.
The disaster could lead to up to $4 billion in insurance claims, Morningstar DBRS said.
Lloyd’s Chairperson Bruce Carnegie-Brown told Reuters it was too soon to put a figure on the total insurance loss, but he said he would be “very surprised” if the event did not result in a multi-billion dollar loss, adding that “the tragedy has the capacity to become the largest single marine insurance loss ever.”
The previous record marine loss was from the Costa Concordia luxury cruise liner disaster in 2012.
Lloyd’s, which has more than 50 member firms, is active in the marine and property insurance markets, which are expected to face large claims from the damage to the bridge and the disruption at the port.
Lloyd’s had gross written premiums in 2022 of more than £6 billion ($7.5 billion) in marine, aviation and transport insurance and reinsurance. North America is its largest market.
