Sources in the insurance sector said that insurance companies in the Middle East are expected to absorb a large part of the losses resulting from the explosion that rocked Beirut Last week, Lloyd’s of London and other international players were less exposed to losses.
Lebanese officials said: The August 4 blast, which killed at least 172 people and turned a large part of the capital into rubble, was caused by a shipment of ammonium nitrate that caught fire, after it had been stored insecurely in the port for years.
Sources in the insurance sector also said: A large part of the losses will be concentrated in compensation for damage to property, and not on damage to ships or the port itself.
“The bulk of the exposure will be in terms of building damage,” said a source at Lloyd’s Market in London.
“A large part of the risks may be covered by the local markets,” he added, which may include insurance companies in Dubai.
A Lloyd’s spokeswoman said: It is too early to determine the amount of insured losses.
وقال Lebanon He expects losses of up to $ 15 billion as a result of the blast, but industry sources said they expect insured losses of only $ 3 billion, mostly in real estate.
The big difference between the two numbers is due to factors, including the fact that levels of insurance coverage may be lower in emerging markets such as Lebanon.
“There will be a lot uninsured,” said the source at Lloyds.
Another source in the insurance sector said: It is expected that losses in terms of ships and cargo will be limited.
Two shipping companies that had ships near the port said that their ships were slightly damaged, and that no one was harmed by their crew.
Zurich Insurance said today, Thursday, that it has clients in Lebanon, but does not expect the explosion to result in a major loss for the company.
But other companies such as Allianz and Munich Re said it was too early to release estimates.
One insurance company in Lebanon said that it excludes the survival of all sixty insurance companies operating there from the Corona virus pandemic, financial turmoil and the explosion.
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