Vessel piracy increases insurance costs
October 27 – At the recent Breakbulk Transportation Conference in New Orleans, an executive from the marine insurance industry said that the surge in piracy in the Gulf of Aden and Indian Ocean is causing ocean carriers, cargo interests and insurers to take a fresh look at their insurance coverage.
Insurance costs for shipping lines are soaring as underwriters have expanded war-risk areas to cover 300 to 400 nautical miles from coasts of pirate-infested shores.
'Breach rates' - insurance premiums paid for sailing into war-risk areas where pirates have been active - have also been increased significantly by underwriters, the audience heard.