The collapse of the Francis Scott Key Bridge in 2024 was an unusual but profoundly impactful moment for the marine insurance world. After a power outage, the MV Dali struck one of the bridge’s support piers, leading to the sudden fall of four spans. Tragically, six people lost their lives. The incident also forced the Port of Baltimore to shut down temporarily and triggered a wave of insurance claims, including marine hull, cargo, liability, and port-related business interruption.
From a PCS perspective, the event marks a turning point. This loss stands out compared to others from previous incidents for a few reasons. A single structural failure, without wind, flood, or fire, caused major multi-line claims. Cargo, hull, liability, and specialty markets all felt the impact. Although it was not weather-related, the scale and complexity of this loss resembled what we often see in natural disasters. It raised an important question about the types of risks marine and specialty insurers should be focusing on.
Much of the damage came from the fragile intersection of aging infrastructure and modern maritime traffic. Ships today are vastly larger than those from the past. Container capacity has grown by more than fifteen times since the late 1960s and has nearly doubled in just the past decade. Yet, the Key Bridge was built in 1977, long before today’s vessel sizes were even considered. That mismatch is becoming harder to ignore, and it reflects a broader concern that many ports in the United States were not built to accommodate the scale and traffic they currently face.
The disruption did not end in Baltimore. Rerouted vessels and congestion at other ports along the East Coast created additional strain on already fragile supply chains. This was a vivid reminder that when a critical point in infrastructure fails, the effects can spread quickly and widely, impacting regional and even global trade. In addition, determining liability has proven complicated. Ship owners, government agencies, and third-party contractors are all involved, which has delayed the claims resolution process.
For insurers and reinsurers, this incident highlights the need to adapt. Non-weather-related risks such as infrastructure collapse, cyber incidents, and supply chain disruption are becoming more common. These risks must be included in modern modeling and underwriting strategies.
The Key Bridge collapse was more than a tragic failure: It served as a wake-up call. As the nature of risk continues to evolve, weaknesses in critical infrastructure must be recognized as a major and growing source of potential loss.
