BP Deepwater bill could top $6bn

Fitch ratings has said the Deepwater Horizon oil rig explosion in the Gulf of Mexico could result in insured losses of as much as US $6bn, reports Bloomberg.

The explosion was “a material event for the reinsurance sector,” said Chris Waterman, managing director at Fitch during a presentation in Zurich.

BP, who do not have insurance, will cover the majority of expenses linked to the clean-up but Waterman said the disaster may cost insurers between $4bn and $6bn. The total economic loss is $35bn, he said.

Swiss Re, the world’s second largest reinsurer, estimated insured losses in June to be as much as $3.5bn, making it the biggest man-made insurance loss since the September 11 terrorist attacks in New York.

According to a Moody’s report from June, insurers are now charging 50% more for policies covering oil rigs after the explosion in April triggered the worst spill in U.S. history.