Hanjin insurance pay out could hit $1.8bn: Credit Suisse

Hanjin insurance pay out could hit $1.8bn: Credit Suisse

Credit Suisse analysts are warning the insurance fallout from the demise of Hanjin Shipping could be one of the largest combined maritime claims in history. The final bill could be as high as $1.8bn, with half of it in marine insurance, the investment bank has warned.

“Though very little information is available for total losses related to the event, using a conservative estimate of business interruption losses, we estimate that total insured losses have the potential to be almost as big as half the size of the Tianjin losses from a year ago of $4bn,” the analysts report, referring to the Tianjin port explosion of 2015, the largest man-made marine insurance loss ever.

Credit Suisse made its Hanjin estimate on assuming 10% of the 10% of the $14bn of insured cargo stranded at sea was unrecoverable.

Meanwhile, the number of creditors to have registered claims against Hanjin Shipping at a court in Seoul ahead of an October 25 deadline is close to topping 4,000.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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