Three shipping accidents in the past two weeks, with claims that could run into the hundreds of millions, could spell increases for ocean-marine insurance, according to industry sources.
The most recognized accident near the United States was a March 23 fire aboard Carnival Corporation's ship Star Princess that destroyed more than 100 cabins on the upper decks of the ship as it cruised in the Caribbean. One person died and 11 were injured in the blaze, which was believed to have been started by a cigarette.
The ship, with more than 3,600 passengers and crew on board, sailed to Jamaica. From there passengers were flown home. The loss of the ship during repairs will affect earnings, the company said.
On March 21, the Hyundai Fortune, a cargo vessel, caught fire 43 miles off the coast of Yemen. All aboard were rescued, according to reports. The cause has yet to be determined.
A statement from Aon Cargo, a subsidiary of Chicago-based insurance broker Aon, said there was a significant likelihood of damage to hi-tech goods worth as much as $300 million.
Aon said a large number of containers were destroyed or affected by smoke or heat.
The firm has contracted a salvage operator to deal with the loss.
On March 22, the Queen Of The North, a ferry ship carrying about 100 people, sank off the coast of British Columbia after hitting a rock. According to some reports, two people remained unaccounted for. Claims could come in at $60 million, according to one report.
Aon Cargo said it was too early to speculate what the impact on the London insurance market will be from the loss of the Hyundai Fortune, but insurers in the Far East face significant exposures. These risks, however, were likely to be reinsured by the London market.
Several brokers contacted by National Underwriter to comment on the impact of the losses did not respond. However, other reports speculated that the three losses could have the effect of putting pressure on maritime insurance pricing, though they did not quantify what the impact could be.
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