An Insurance Business Magazine article.
The blocking of the Suez Canal and the resulting disruption to global shipping is likely to cause a large loss event for the reinsurance sector, according to Fitch Ratings.
The canal was blocked March 23 when 400-metre cargo ship Ever Given ran aground during high winds. Fitch Ratings said the event would reduce global reinsurers’ earnings but should not materially affect their credit profiles. However, prices for marine reinsurance will rise as a result of the grounding, Fitch said. The ship was freed Sunday and transit through the canal has resumed.
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