Maritime Kidnap and Ransom Risk
If Pirates had better boats, it would be much worse
We have not heard very much about the Somali pirates in the news recently and the reason for their lack of kidnap and ransom activity is because of poor weather and monsoon season. The boats they use are so bad, that any sort of high seas and storm activity can send the boat to the bottom of the ocean.
However, the bad news regarding the maritime and shipping kidnap and cargo seizure risk off the Somali coast in the Gulf of Aden is that the weather is improving and an increase in attacks is expected soon.
Insurance products are being developed in the London market to help ship owners and shipping companies deal with the financial risk of the pirates, and they are not just limited to Somalia. Many are adopting or revising old marine kidnap and ransom polices to adjust coverage levels and add new coverage such as cargo special protection / special cargo protection that would indemnify shipping companies in the even cargo does not find it’s destination because of a pirate related incident.
All shipping companies are advised to make sure their marine k&r polices are completely up to date.
