Panama Canal expansion to increase insurance risk: Allianz report

Allianz Global Corporate & Specialty S.E. has said in a report that the expanded Panama Canal would increase insurance risk as larger ships and more frequent transits increase the value of insured goods passing through the canal, The Loadstar reports.

"With the increase in size of vessels transiting the canal, you have a corresponding increase in operational, environmental and commercial risks," said an official at the insurer. The report said that larger ships pose greater risks as the sheer amount of cargo carried "dictates that a serious casualty has the potential to lead to a sizeable loss."

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