The 4 August Beirut port explosion has led to significant uncertainty in the Lebanese insurance sector.
Questions have been raised about insurers refusing to pay compensation for damages generated in the 4 August Beirut post explosion on the grounds that an official report has yet to be released stipulating the cause of the explosion.
Conflict between businesses and insurance companies concerning responsibility for damages from the 4 August Beirut port explosion has erupted into the open, pushing a major trade chamber to engage a complaint handling specialist to negotiate between the two sides.
The only obstacle to paying all the insurance claims resulting from the unfortunate 4 August blast at the Beirut port is that there has been no release yet of the report on the investigation into the explosion, that will show the reason behind the explosion, according to a senior insurance executive.
Munich Re said it faces claims of at least EUR100m ($118million) stemming from the deadly explosion that ravaged much of downtown Beirut last month, reported Bloomberg.
The 4 August Beirut port explosion caused between $3.8bn and $4.6bn in damage to physical stock, while losses including changes in economic flows as a result of the decline in the output of the economic sectors are estimated to be in the range of $2.9bn and $3.5bn, according to preliminary estimates arising from a Rapid Damage and Needs Assessment (RDNA).
Insurance claims arising from the 4 August warehouse explosion at the Port of Beirut have so far reached $425m, according to Caretaker Economy Minister Raoul Nehme.
Insurers in the Middle East are expected to absorb a large part of the losses from Beirut's explosion on 4 August, with Lloyd's of London and other international players expected to be less exposed, reported Reuters quoting insurance industry sources.
The tragic and catastrophic explosion that occurred in Beirut on 4 August, beyond the immediate health and safety concerns, raises important and potentially time-sensitive considerations involving obtaining compensation for property damage sustained due to the blast.
The Association of Insurance Companies in Lebanon (ACAL) has said that about 70% of the damages resulting from the 4 August devastating explosion in the Beirut port are not covered by insurance.