Lengthy Processing Time See for U.K. Oil Fire Claims

A bulletin on the Lloyd’s Web site notes that “claims from the biggest fire in Europe for over 50 years [the Buncefield fire] will impact the London market in two phases, according to a major loss adjuster assessing the recent accident.”

James Rayner, Head of loss adjuster GAB Robins’ who are handling some of the Buncefield claims, indicated that energy underwriters will be expecting claims for damage to the facility and the loss of oil supply. This will be followed by a “knock on effect for the market’s excess of loss and reinsurance carriers.”

Rayner said the biggest issues caused the blast are the disruption and destruction of the facility, as well as a number of depots belonging to household name brands in the run up to Christmas.

“Buildings have been totally destroyed, and we’re seeing supply chain disruption for a number of major brands,” he stated. “The London market will see claims from excess of loss and reinsurance programs but they will not filter through for some time.”

The bulletin also noted that Marsh said the Buncefield explosion and its impact on the surrounding businesses will prompt a renewed effort by the market to deliver the message on the need for robust business continuity plans. “These plans should focus on reducing the impact of interruption to business, regardless of the incident’s cause,” Marsh indicated. “Businesses affected by the fire will no doubt seek to recover as many of their losses as they are able to from those parties responsible.”