Fire has always been a peril for shipping, but the advent of lithium-ion batteries has elevated the risk to the point that it now is the most expensive cause of loss for the industry, according to a new bulletin issued by Allianz Global Corporate & Specialty.
Randall Lund, a senior marine risk consultant for AGCS, said the combination of ever-larger vessels and more hazardous cargo is leading to “astronomical” losses for insurers. Fire/explosion was the most expensive cause of loss for marine claims in 2021, accounting for 18% of $9.2 billion in total losses, according to an analysis of 240,000 marine insurance claims over the past five years.
Lund said “without a doubt” the risk of fire at sea is going to keep growing.
“The increase in the volume of electric vehicles transiting across our oceans and the demand coming worldwide is continuing to increase,” he…
Fire a Growing Risk to Shipping Because of Lithium-ion Batteries, Allianz Says
