'The majority of claims will come from motor, cargo, liability and property insurance' said Terence Wong, from Fitch's Hong Kong office. Automotive manufacturers Renault, Volkswagen, Kia and Hyundai lost 8000 cars in the chemical fueled fireball. 'The high insurance penetration rate in this area could make the blasts one of the most costly catastrophe claims for the Chinese insurance sector in the last few years', mr Wong wrote in a statement to clients.

Insurance sector damage 

The rating agency raised concerns that the material costs will undermine the financial performance of regional insurers. The US$1.5bn estimate is in line with a calculation by Credit Suisse analysts released on Monday. International insurance firms Zurich and Alliance have yet to confirm details of losses. The damage to the Chinese insurance sector is likely to be mitigated by the exposure passed onto global reinsurers such as Swiss Re, PartnerRe and Lloyds. Sources: Fitch Ratings; RT