Tuesday, January 17, 2012
While rescue crews continue to search for survivors of the Costa Concordia tragedy on the Italian coast, Bermuda believe it or not, will soon be feeling the smack of the ship's wake. According to Bloomberg, Bermuda's XL Group is one of the cruise line's lead insurers, and along with insurance firms Generali SpA and RSA, faces up to $1 billion in potential damages. In case you're wondering that would be a new record for a ship wreck, dwarfing the claims that followed the sinking of Exxon Valdez, which ran aground in Alaska in 1989 costing insurers $500 million. And although the final bill will be shared by 12 other insurers from the London market and likely won't be definitively known for months or even years—at the moment losses are estimated to be between $600 and $800 million—it's amazing to think how one rock could simultaneously rip a gaping hole in a ship and an industry. Risky business, indeed.