Ship insurance likely to rise
NEW YORK (Bloomberg) ? The cost of insuring ships may rise following a series of accidents in the past week, according to Marsh & McLennan Cos. and Aon Corp., the world's largest insurance brokerages.
A fire on the may have damaged one-third of the 5,000 containers, costing insurers up to $100 million, shipping newspaper Lloyd's List reported. An accident involving a Canadian ferry, the , off British Columbia, may lead to claims of $60 million. A fire on the cruise ship , which affected 100 cabins, will also cost insurers, the newspaper reported.
"There will be pressure to raise annual rates," Ken Alston, managing director of marine and energy practice in London for Marsh & McLennan, the world's biggest insurance brokerage, said in a telephone interview in London. "It's difficult to quantify the change in costs, though."
The three accidents may have caused insurance losses of up to $100 million, according to Steve Allum, chairman of global marine practice at Chicago-based Aon.
"The accidents have made the underwriters sit up and take notice," Allum said by phone from London. "There will be pressure on costs for sure, though I doubt that we will see a significant hike in rates."