Thoughts on some piracy implications for marine insurance

Dr Tina Loverdou, Claims Handler, The London P&I Club Visiting Lecturer, Centre for Commercial Law Studies (CCLS) Queen Mary, University of London

During the last few years the increase of piracy in the Gulf of Aden and off the Somali coastline has created an increasingly insecure shipping environment, and has had strong implications on marine insurance law and industry. While piracy itself always constituted a foreseeable risk, the increase of pirates’ level of activity and their evolving techniques has had a marked effect both on marine insurance premiums and insurance cover. Furthermore, various types of losses related to piracy risk has brought about complications regarding types of insurance that need to be purchased. This article aims to provide thoughts on some implications the piracy risk may have on marine insurance policies.