Baltimore Bridge Collapse May Set Record for Marine Insurance Losses, Lloyd’s of London Chairs Warn

The catastrophic collapse of Baltimore’s Francis Scott Key bridge, following a collision with the Dali, a Maersk-chartered ship, is poised to set a precedent as the largest single marine insurance loss, according to Lloyd’s of London. This grim forecast was shared by Bruce Carnegie-Brown, chairman of the venerable insurance market, and CEO John Neal, highlighting the enormity of the financial implications. Neal, in a BBC Radio 4 interview, expressed relief that both the bridge and the vessel were insured, underscoring the importance of insurance in mitigating financial fallout from such disasters.

The incident, which resulted in the tragic loss of two construction workers and presumed death of four others, has sparked concerns within the insurance industry about the potential for billion-dollar claims. Analysts from Barclays and Morningstar DBRS have projected the disaster could prompt insurance claims ranging from $3 billion to $4 billion, surpassing the losses from the 2012 Costa Concordia disaster, which amounted to $1.5 billion after the luxury cruise ship capsized off Italy’s coast.

The warnings from Lloyd’s leadership underscore the severity of the Baltimore bridge collapse in the context of marine insurance history. Despite the anticipated financial strain on the industry, Neal’s remarks reflect a sense of preparedness and the role of insurance in addressing the consequences of such large-scale tragedies. This incident comes as Lloyd’s of London reported a pre-tax profit of 10.7 billion pounds for 2023, buoyed by strong underwriting performance, juxtaposing the potential challenges ahead with recent successes.