Baltimore Bridge Collapse Shows Why Marine Liability Claims Demand Flexibility and Foresight

As the marine insurance industry marks one year since the Baltimore Bridge collapse, Howden emphasizes the event’s ongoing implications and the need for adaptability in handling complex liability claims. Originally estimated at $2–3 billion, the final market consensus settled closer to $1.5 billion by late 2024. Despite its size, the loss did not drive a hardening of the marine market, largely due to strong prior profitability and increased competition in the sector.

The timing of the collapse—just ahead of the April 2024 renewal cycle—meant its impact on rates was delayed. However, by January 2025, it acted as a stabilizing factor in a softening market, slightly slowing the pace of rate decreases. While the broader market remained resilient, secondary placements, including the International Group of P&I Clubs and facultative markets, experienced more immediate rate increases, reflecting their sensitivity to emerging risk dynamics.

Howden’s analysis suggests that while the bridge collapse was significant, its lack of large-scale pollution or loss of life limited broader market ramifications. The event highlights the complexity of marine liability claims, with multi-year settlement processes, legal uncertainties, and evolving responsibilities—such as the potential role of the State of Maryland in funding reconstruction—adding to the challenge.

Ultimately, the Baltimore incident served more as a test of the industry’s adaptability than a catalyst for systemic pricing change. The marine insurance sector’s ability to absorb major losses while maintaining pricing stability illustrates the importance of strategic secondary markets and risk-spreading mechanisms in today’s environment.