The huge explosions that struck one year ago in Tianjin may change future thinking on accumulation risk, according to Munich Re.

The devastating incident rocked the Chinese port on August 12 last year, killing 173 people and injuring at least 800. Fireballs and shockwaves destroyed containers and caused major damage to warehouses, production facilities and homes.

Munich Re estimates insured losses at €3 billion ($4.34 billion), and says Tianjin proves it is not only natural catastrophes that produce considerable accumulated losses.

“Disasters due to human error can have the same effect,” it said.

“Tianjin can serve as an example, prompting close scrutiny of accumulation risks not only in the case of large port facilities but also for large warehouses and industrial parks.

“This applies with regard to the concentration of very different types of freight in a narrowly circumscribed area, as well as in respect of the risks presented by industrial enterprises or infrastructure in the surrounding area.”

Munich Re says drone and satellite imagery was crucial in assessing Tianjin losses.

“Thanks to increasingly high-resolution imaging and greater amounts of satellite data available, a first swift assessment of the loss from the air will now probably become standard procedure for large losses of all kinds.”

Modern information and tracking systems “can clearly enhance safety”, helping to make movements of hazardous substances in port areas more transparent.

“In an emergency, it is essential to have fast access to data on all relevant hazardous substances to ensure emergency services have all the information they need regarding the substances’ location, type and quantity, as well as on the safety precautions taken to protect people and the environment.”