Live Insurance News
Carnival has announced that “substantially all” of the amount recovered through insurance are connected to the Costa Concordia disaster, which occurred on January 13, when the cruise ship ran aground and then capsized off of the Italian island of Giglio.
Peter Greenberg.com Travel News
The Costa Concordia remains in the headline, but most reports focus on the legal implications. The Travel Detective looks at what’s to come for the actual ship and breaks down the history of marine salvage in the cruise industry. There’s a dark science called marine salvage. If you’re driving your car and it gets totaled, the tow truck comes and you get paid some depreciated amount from your insurance company, the car gets taken to a salvage yard and gets crushed and that’s it–we’re done– the car never gets driven again. That is not necessarily the case in the cruise ship business after a major accident.
“We also believe the recent high-profile loss arising from the grounding of the ‘Costa Concordia‘ may prove to be the greatest demonstration yet of the resilience of the International Group of P&I Clubs (IG) structure.” during the financial year ended February 2011, risk-based capital adequacy improved–likely to its best-ever level–supported mainly by continued improvements in underwriting results and the somewhat unexpected resilience of investment returns. However, there are signs of pressure on this strengthened level of capital, which may yet cause us to view the sector and even some individual clubs slightly less positively.
The Costa Concordia cruise ship disaster is not expected to affect Flagstone’s 2012 results, the Luxembourg-based global reinsurer says. Flagstone reported a net loss for the 2011 third quarter of 59.5 million, compared to net income of $37.3 million in the 2010 third quarter. In October, Flagstone Re announced a new business focus on property, property catastrophe and highest-margin short tail specialty reinsurance.