Ransom Demands and Law Enforcement


A growing problem, piracy is on everyone’s mind, but thus far it has been a greater issue for hull writers and P&I Clubs.


“For general containerized cargo, it’s probably not front and center until that phone rings and you have a claim.”


Sean Dalton, Zurich


The number of piracy incidents is staggering. And while certain events, like the heroic naval rescue of the Maersk Alabama, a seized cargo ship, make the headlines, pirate attacks occur all the time. For 2011, the Asian Shipowners Forum reported in mid- September that Somali pirates had attacked 163 ships, hijacked 21 of them and took 361 seafarers hostage. Economic sanction laws limit the response to pirate attacks, including the ability to meet ransom demands, but compliance is crucial. Much of the business insuring vessels against pirate attacks has migrated to the kidnap and ransom insurance market and the war insurance market, but due to overcapacity and poor results, some underwriters are stepping away.


Copyright © 2011 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18