WIN Magazine - Summer 2014 - (Page 10)

HIGH COVER STORY RISKS ON THE HIGH SEAS T BY HANNAH GILES HE SURGE OF Piracy began back in 2008 when there were 111 pirate attacks in the Gulf of Aden and off the east coast Somalia, including 42 vessel hijackings. Since then piracy has been on the decline, the last peak of 52 vessels in 2009 (This excludes local fishing vessels). Since May, 2012, when the Greek Tanker "Smyrni" was hijacked while transiting the Gulf of Aden and held for over 10 months, no merchant vessel has been successfully taken, this is due to the employment of Maritime Security Personnel. We have actually seen a rise in Piracy in the Gulf of Guinea, however the pirates here follow a different modus operandi from pirate activity in other parts of the world. In addition to armed robbery, the more serious attacks involve the hijacking of product tankers to steal a part of the cargo. 10 | v i e w t h i s i s s u e a t | TRENDS AFFECTED BY UNDER-REPORTING Piracy statistics since the "Smyrni" have been incomplete, with some indicating that the number of attacks have increased from year to year, although official figures contradict this. An explanation for this could be shipowners, charterers and private maritime security personnel choosing not to report attacks to the International Maritime Bureau (IMB) to avoid extra paperwork and increased premiums. Evidence would suggest that this has been especially true where armed guards have discharged live rounds, as is evidenced by video footage surfacing on the internet but not recorded officially. The IMB has been vocal in warning of the dangers that under-reporting presents to the maritime community. These include under-insurance, increased exposure and threats to safety if a particular area is not identified as

Table of Contents for the Digital Edition of WIN Magazine - Summer 2014

Cover Story: High Risks on the High Seas
The Rising Importance of Property Catastrophe Risk in the “New Normal” of the Nonadmitted Market
Claims Leakage: Plugging the Hole with Predictive Modeling
Managing Casualty Risks
Understanding the Data Viability and Uses for Underwriting Commercial Auto
2014 AAMGA Wholesale Insurance White Paper Winner: Pandemic Insurance in the Excess and Surplus Lines Insurance Industry
2014 AAMGA Wholesale Insurance White Paper Winner: Catastrophe Bonds: Looking Forward
Organizing Emerging Risks: AAMGA Formalizes a Collaborative Approach
In the WIN-ner’s Circle
Index to Advertisers

WIN Magazine - Summer 2014