Piracy insurance on the increase as attacks rise
15 August 2011
International piracy insurance to protect vessels, cargo, crewmembers, passengers and maritime security professionals continues to grow as the number of reported incidents also increases.
In the first six months of 2011, the total number of attacks worldwide was reported at 243 incidents, with the number of successful hijackings almost doubling in the first quarter compared with 2010.
The majority of reported incidents were concentrated off the coast of Somalia, where it is estimated that a total of 28,000 vessels transit each year.
Lloyd’s Market Association has confirmed that piracy insurance is a growing area. Bellwood Prestbury is arranging international piracy insurance for many more clients, particularly for maritime security companies.
Rob Thompson, Director at Bellwood Prestbury explains: “Pirate activity continues to increase and their approach is getting ever more sophisticated. In Somalia, they even have their own pirate stock exchange where people can invest in pirate activity and share in the ransom spoils. In that sort of environment, piracy insurance, possibly including kidnap insurance, global life and accident insurance and international cargo insurance can be a relatively inexpensive way to protect people and goods.”
To find out more about piracy insurance options, call our experienced team on +44 (0) 1242 584 558.