In the past decade, cruise ship catastrophes have been responsible for $1.6 billion in lost profits for cruise line and other insurers, according to a new report from the International Cruise Lines Association.
As the number of cruise ships in the world continues to grow, insurers are having a hard time finding a way to insure the thousands of ships that are now being used as cruise liners, the report said.
“Cruise ship catastrophys are now responsible for about 5 percent of the total losses to cruise linters,” said Richard Bensch, president of the ICLA.
“But they are responsible for 30 percent of all cruise ship accidents, according the Insurance Information Institute.
In the U.S., cruise lines are responsible to passengers for an average of $1,079,500 in insurance premiums, while cruise ships and other carriers pay $3,878,500.
The U.K., Australia, Japan, France, South Korea and Spain are the most expensive countries in the U, while South Korea, Russia and China are the least expensive.
Cruise liner accidents and fatalities account for an estimated $6.9 billion in losses for cruise and other cruise line insurers, and cruise liner insurers are paying an average $917,000 to cover the losses, the ILCA said.
The annual losses for insurers covering cruise ship losses reached an all-time high in 2016, the Insurance Institute for Highway Safety reported.
Cruiser ship catastrophy insurance costs have soared in recent years as cruise lines have expanded their fleets and increased passenger traffic, but the IACS said cruise linaries are still responsible for just 6 percent of cruise ship casualties.