When salvage teams begin hauling the wrecked Costa Concordialiner upright on the Italian island of Giglio next week, the financial stakes for insurers will be almost as enormous as the awe-inspiring feat of engineering.
According to reinsurer Munich Re, the overall insurance loss from the accident could surpass $1.1 billion. As much as half of that may be swallowed up by the cost of the salvage operation.
"I think now it's the most expensive wreck removal operation in history," said Rahul Khanna, a former tanker and bulk carrier captain and now a senior marine risk consultant with the shipping insurance arm of Allianz.
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