Tianjin blasts estimated to $1.5 billion in insurance claims

Due to a series of explosions leaving hundreds of people death and others injured, while some are still missing, China is about to start a wave of insurance claims.

Credit Suisse had estimated the initial insurance claims could reach up to $1.5 billion.

It's been almost a week after the fiery explosion in Tianjin, China reaching a death toll of 114 and yet several bodies are believed to be ensnared in the debris left by the powerful blast. According to the authorities, 57 people are still unable to be found.

Chinese insurers across several sectors such as property, casualty and life will be greatly affected by the blasts, as written in a research note by Credit Suisse analyst. "Many international insurers will [also] be impacted as they insure multinationals directly or provide reinsurance coverage to the Chinese insurers."

The claims related to the blasts will primarily include three kinds of insurance namely; life insurance with government paid premiums, employer liability insurance purchased by enterprises, and property insurance that covers damage to vehicles and factory buildings in the blast area which is according to an industry expert.

Local Chinese insurers are set to bear the total of the costs and it is not understood how much of their exposure will be transferred to insurance companies. They account for almost 80% of property and casualty premiums.

Some of China's largest insurance companies have already received hundreds of claims for property, car, and employee liability claims, including China Pacific, China Life and Ping An.

" Transport insurers are looking at the damage to containers, warehouses and new cars but also the port's infrastructure of trains, cranes and rail tracks," as told to Reuters by Dieter Berg, a marine expert at the world's largest reinsurer, the Munich Re.

Renault said on Monday the explosion would affect its deliveries in August and September.

Hyundai Motor Co, a Korean automaker facilitating in Tianjin, claimed they have 4,000 cars parked in the area that were damaged amounting to $136 million.