Tianjin blast losses could be higher than estimatesAugust 20 2015 by InsuranceAsia News Staff
Credit ratings agency, Fitch, announced that the total insurance losses from the devastating explosions at the Chinese port of Tianjin could be higher than the earlier estimate of $1 billion to $1.5 billion.
According to Fitch, the high insurance penetration in Tianjin could make the explosion the most costly catastrophe claim for China’s insurance sector in the past few years.
Experts also said that the Tianjin blast will serve as a test for Chinese insurers as well as some regional insurers with exposure in China.
In a statement, Fitch said the twin blasts that rocked Tianjin will likely undermine the financial performance of some regional insurers and P&C insurers that have high exposure in the areas affected.
Credit Suisse earlier estimated that the insurance losses in Tianjin could be around $1 billion to $1.5 billion.
The insurance claims from the blast could represent more than 5% of the six leading insurers’ aggregated shareholder capital.
Among the most active insurers in Tianjin are PICC Property and Casualty, Ping An Property & Casualty, and Taiping General Insurance.
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