LMA comment on situation in Egypt
The situation in Egypt is being monitored by underwriters and their security advisers. On the marine side this is because of possible risks to ships transiting the Suez Canal, which is one of the world’s major trade arteries. On the cargo side there are also concerns about possible loss or damage to goods in transit on land and in storage. More generally the property and terrorism markets may have exposure in the form of buildings and the political and credit market will be looking at economic aspects.
At present, the Canal remains open and, despite reports of isolated incidents, the ports are largely functioning as normal. Unless the situation changes drastically, and there is extensive disruption over an extended period, the current situation is unlikely to have a major impact for insurances. Similarly, despite the extensive media coverage of rioting and property damage, at this stage it is too early to assess the extent, and monetary cost, of these activities, this will only emerge over the next few weeks.