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Tianjin blast has less impact on insurance than fall in commodity prices

Time：2016-01-12 Browse：78 Author：RISINGSUN

MARINE reinsurance rates continued to fall from the first of the year with greater impact than the huge costs arising from the explosions in Tianjin port last August, Reuters reports.

"Tianjin has had little or no impact on marine pricing," said Chris Klein, head of strategy at London`s Guy Carpenter reinsurance brokers.

Of greater import were falling commodity prices reduced cargo value, while slow growth in China dragged down reinsurance rates, he said.

"Less cargo is being moved and the cargo being moved is worth less - you can see how that has had an effect," said Mr Klein.

Rising competition to offer reinsurance was another factor depressing rates, he told a press conference.

The blasts at Tianjin caused insured losses of up to US$3.3 billion, while reinsurer Swiss Re has called it the largest man-made insurance loss in Asia. The explosions killed more than 170 people.

Many reinsurance contracts are renewed in January and Mr Klein said marine reinsurance prices this month were down by between five and 20 per cent from a year ago.