How the insurance industry handling the arising issues
A black flag showing a skull and crossbones automatically flashes through our minds each time we read or hear the word ‘piracy’ – I suspect that there must be a neurolinguistic programming into our minds since we were in our youth. Whilst reading comics containing stories of pirates , or watching Captain Hook’s adventures in movies, was an exciting and entertaining experience – maritime piracy is and has always been a crime with a severe detrimental impact on both the shipping industry and global economy, and, most importantly, in human lives lost, injured or psychologically traumatized.
Maritime Piracy crime goes back to the seventeenth and eighteenth century. Between 1716 and 1726, pirates captured 2,400 vessels , an average of 200 vessels annually. In our era, between the year 2000 and 2004 the IMB and ICS recorded 920 attacks in S.E. Asia alone, out of 1,944 total world wide and until 2008 the average number of reported attacks had increased to 358 yearly! This number is considered conservative as many shipowners do not report piracy attacks against their vessels as this would result in incident’s investigation costs by Hull, War and War P&I underwriters which eventually could result in insurance premium increases.