Page 19 - Insurance Times April 2024

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Baltimore bridge collapse The previous record marine loss was have lapsed in Bangladesh in the last
from the Costa Concordia luxury cruise 14 years owing to a raft of factors
likely to result in multi- liner disaster in 2012. including the worsening of financial
billion-dollar insurance Lloyd's, which has more than 50 health of clients, a lack of awareness

claims -Lloyd's of London member firms, is active in the marine among them, and agents' tendency
and property insurance markets, which not to explain product features
The collapse of Baltimore's Francis Scott properly while selling them.
are expected to face large claims from
Key Bridge is likely to lead to a multi-billion
the damage to the bridge and the In 2009, the total number of policies
dollar insurance loss, the chairperson of
disruption at the port. was nearly 1.12 crore and it fell to
commercial insurance market Lloyd's of
London (SOLYD.UL) said. Lloyd's had gross written premiums in 85.88 lakh in 2023, figures from the
2022 of more than 6 billion pounds Insurance Development and
The massive Singapore-flagged Regulatory Authority (Idra) showed.
container ship Dali sailing out of ($7.5 billion) in marine, aviation and
transport insurance and reinsurance. About 50 percent of life insurance
Baltimore Harbor bound for Sri Lanka
North America is its largest market.
reported losing power and the ability policyholders in Bangladesh don't pay
to maneuver before plowing into a Carnegie-Brown also said the insurer premiums after the first year.
support pylon of the bridge on Tuesday. has set aside 1.6 billion pounds ($2 The lapse rate is 10 percent in India.
billion) in reserves in the past two
The impact brought most of the bridge Globally, 96 to 98 percent policies are
tumbling into the mouth of the years for disputed aviation claims over continued, said SM Ibrahim Hossain,
planes stuck in Russia following its
Patapsco River, blocking shipping lanes director of the Bangladesh Insurance
invasion of Ukraine.
and forcing the indefinite closure of the Academy, a state-run institute
Port of Baltimore, one of the busiest Talks between aviation leasing imparting training to insurance
on the U.S. Eastern Seaboard. companies and insurers to reach professionals.
settlements over the multi-billion
The tragedy could lead to up to $4 The reasons for the higher lapse rate
billion in insurance claims, Morningstar dollar claims were at a "reasonably include purchasing of higher value
advanced stage", Carnegie-Brown
DBRS said. plans compared to the affordability of
said, ahead of major court cases in
It was too soon to put a figure on the Dublin and London due to take place clients and agents' bent not to furnish
total insurance loss, Bruce Carnegie- this year. (https://www.reuters.com/) potential customers with key
Brown told Reuters, but he said he information that may lead to non-
would be "very surprised" if the event 26 lakh insurance policies subscription of the products in the first
did not result in a multi-billion dollar discontinued in 14 years in place, according to Mohammad Jainul
loss, adding that "the tragedy has the Bari, chairman of the Idra.
capacity to become the largest single Bangladesh "Many a time, agents don't share rules
marine insurance loss ever". More than 26 lakh insurance policies when they sell policies. Agents may

18 April 2024 The Insurance Times