Back in our January/February issue, I covered the topic of piracy in “The High Seas of Risk.” Since then, the problem has only gotten worse. The brazen pirates have grown in size and have become increasingly fearless towards any sort of attempts to stop them.
As expected, the price of piracy insurance has skyrocketed. Just yesterday, The Wall St. Journal published a piece noting acknowledging the drastic rate increase.
‘In general, the price is up five- to 10-fold from 18 months ago,’ when the surge in piracy off Somalia began to take off, said Peter Townsend, executive director for the marine practice group at insurance broker Aon Corp. ‘The demand is there.’
The Insurance Daily website has also reported on the situation off the coast of Somalia and how it has ballooned kindap and ransom insurance rates.
Some insurers could be paying a premium of $30,000 for the $3 million of cover during one journey across seas that have become treacherous because of the activities of Somali pirates.
The New York Times featured an interesting video showing an Italian warships’s efforts to fight piracy in the Gulf of Aden. And below, a self-assured Somali pirate grants an interview with a local news station.