Marine insurance losses from the Tianjin chemical warehouse explosions in August are likely to total a record $US2.5-$US3 billion ($3.5-$4.2 billion), according to the International Union of Marine Insurance.

Facts and Figures Committee Chairman Patrizia Kern-Ferretti says overall insured losses at the Chinese port are estimated at $US5-$US6 billion ($7-$8.4 billion).

“The severity of the blasts, coupled with the exceptional amount of insured goods stored on site, made this event the biggest man-made loss to occur in Asia and the largest marine loss in history,” she said.

“The size of the insured loss of this, and any similar disaster, is driven by the accumulation of risks that are simultaneously exposed.”

Assessing the damage has been difficult because loss adjusters have had limited access to affected areas, which are part of a massive industrial and petrochemical complex. Compounding matters are the explosions’ multiple fallout impacts on surrounding areas, including other warehouses and cargo storage spaces.

“Adjusting the losses in Tianjin requires a good knowledge of the goods that were stored, but this is particularly challenging for cargo insurance, which is affected by large fluctuations in insured values,” Ms Kern-Ferretti said.