The collapse of the Francis Scott Key Bridge in Baltimore is now the costliest marine casualty on record, with losses of at least $2.85 billion — and the final tally remains uncertain as civil and criminal cases are still unresolved, according to broker Aon. The rising costs are set to drive a third consecutive annual increase in reinsurance charges for container ship owners.

On March 26, 2024, the 9,962-TEU container vessel Dali (built 2015) lost power and steering twice within four minutes due to a loose electrical cable, striking and destroying the bridge and triggering a massive salvage and recovery operation.

The ship’s owner, Grace Ocean, and the 12 major Protection and Indemnity (P&I) clubs are protected against such extraordinary losses through a reinsurance contract that spreads any claim exceeding $100 million among dozens of commercial insurers, each taking a portion of the risk. The contract is renegotiated annually by the International Group of P&I Clubs, but reinsurers have demanded higher premiums — particularly for container ship owners.

According to Aon, these owners have already seen their own contributions rise by 15% and 24% over the past two years, and another increase is expected when the new reinsurance contract is announced in December.

The rising costs for container owners contrast with the experience of tanker and passenger ship owners, whose shares of the reinsurance bill fell last year. In its review of the P&I clubs’ financial position, Aon said: “The International Group may well look again to the container sector to take a higher increase than other sectors, as has been seen in the past after major loss events.” In 2012, the Costa Concordia disaster, which killed 32 people and cost $1.6 billion, triggered a spike in reinsurance costs for the cruise sector.

The reinsurance contract represents an additional expense for most members of the 12 major P&I clubs, on top of their annual P&I premiums. Only the Shipowners’ Club, which specializes in small vessels, folds the reinsurance cost into its P&I premiums.

Reinsurance — insurance for insurers — is vital to the more than century-old P&I system. Each club covers the first $10 million of any major incident, with the next $90 million shared among the clubs. Any claim exceeding $100 million is covered by reinsurers, up to a limit of $3.1 billion. The *Dali* incident made insurers realise that even $3.1 billion might be insufficient, so the limit was raised to $3.35 billion in the latest contract announced in December 2025.

Aon said the International Group may consider raising that cap again to “protect against the risk of future catastrophic losses above the $3.35 billion limit.” Any additional costs beyond that maximum would revert to the clubs’ shipowner members.

Last month, after U.S. insurer Chubb refused to pay its share, the International Group had to cover a larger portion of the $2.25 billion settlement with the U.S. state of Maryland, with the remaining clubs collectively making up the shortfall. The International Group has said that Britannia P&I Club, which provided cover for the Dali, is “taking all viable steps” to ensure that payment is made.