Shipping threatened by piracy: Who picks up the bill?

Shipping threatened by piracy: who picks up the bill?

Swiss Re's latest expertise publication looks at the impact of piracy on marine and cargo insurance in Asia, now home to almost half of the top 20 container ship operators and 16 of the world's top 35 merchant fleets.

Shipping has never been an easy trade.

As we come gradually out of the economic downturn, the shipping industry is seeking a healthy balance between many issues: from eroded budgets and maintaining safety, to quality at sea and ways to tackle growing environmental concerns. Piracy therefore is often viewed as an additional - and irksome - burden to what is already a long list of challenges.

From an occasional nuisance which was just about perceived on the radar screen a few years ago, piracy has burgeoned into an international problem affecting not only the shipping industry itself but also dozens of countries and their economies around the globe. 

As a solution provider in all Marine relevant areas, Swiss Re has carefully followed events surrounding this subject for some years and Victor Enzler, a Senior Marine Underwriter for Swiss Re in Singapore, has used this knowledge to author our company's latest expertise publication: "Shipping threatened by piracy: who picks up the bill?". 

The 15-page work looks at the impact of piracy on marine and cargo insurance in Asia, but its messages are applicable and relevant to any shipper anywhere who wants to know what can be done to manage the growing risks of piracy in the face of changing laws, inconsistent underwriting approaches and rising costs.

We hope this publication will help the Marine insurance community, especially Cargo interests, understand the pitfalls awaiting the uninformed where piracy and ransom are concerned; and encourage them to take better control over their 'destiny' in terms of piracy/ransom coverage.

They can do this by making sure they know what the insurance they are selling or buying will cover should piracy occur.

The author lists some simple rules that all parties can follow to avoid confusion and potential disappointment, no matter where you sit in the marine insurance chain.

Download the publication

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