Wednesday, July 14, 2010
Wednesday, April 7, 2010
Kidnap And Ransom: Piracy Premiums Take A Breather But Menace Remains
This is a first. I want to thank the insurance company Maritime and Underwater Security Consultants who sent me this excellent article, and here is a link to their website. Their intent was to promote that their company has the most extensive insurance plans for kidnap and ransom, and that other companies fall short in their coverage. If you are a shipping company owner or yacht owner and you are reading this right now, feel free to check these guys out–but still, buyer beware. This is not an FJ endorsement, but I will definitely provide a link for your research.
The real story here though, is that with all of this competition between insurance companies in providing K and R insurance driving down cost, as well as the increase in protective measures on the boats, premiums are dropping. Now of course Reuters and the authors won’t say it, but I think armed security contractors on the boats are what really give them a better rating. That, and all these navies floating around and hunting pirates have got to help as well. But what happens when these navies burn out, and their governments call them back because of the cost?
For one, if you read further down the report, there is already some buzz in the industry about starting up a private navy to help supplement today’s naval operations. I personally think this is a move to provide a back up plan, if a navy or two decides to bow out. Piracy is not going away anytime soon, and I wonder how long countries can keep up their deployments–both politically, and economically.
I also took interest in this Automated Voyage Risk Assessment system, designed to analyze a boat’s protective capabilities in dangerous waters. AVRA I hope is a complete assessment system, that includes lethal and non-lethal factors in protecting a boat. If this is one of those mechanisms developed by the Juicebox Commandoes I keep talking about, who continue to promote non-lethal as the only suitable protection for ships, then I have no respect for AVRA. –Matt
—————————————————————–
Piracy premiums take a breather but menace remains
Thu Apr 1, 2010
By Myles Neligan and Lorraine Turner
LONDON (Reuters) – Stiff competition and moves by owners to protect ships better has taken the edge out of insurance costs after pirate attacks off Africa’s east coast created a two-year boom for specialist cover.
But analysts say the menace of piracy is far from contained, and unchecked growth in the rest of Africa, possible attacks in other key shipping channels and higher ransom demands will keep insurers interested in the long term.
While official estimates are not available, brokers reckon sales of so-called marine kidnap and ransom (K&R) insurance have soared to about $100 million (66 million pounds) a year since 2008, when the product was first developed in response to an upsurge of vessel seizures and ransom demands by Somali gangs.
But the cover now costs less than it did two years ago, reflecting mounting competitive pressure as more insurers enter the fast-growing market.
The marine K&R market is currently dominated by six players, led by Bermuda-based Hiscox (HSX.L) and Travelers (TRV.N) of the U.S., up from just three when the product first became available, and more are expected to join.
“There’s an increase in supply and the price is going down,” said Sean Woollerson of insurance broker Jardine Lloyd Thompson (JLT.L).
Monday, December 14, 2009
Maritime Security: Pirate Attacks Trigger Armed Guard Coverage
Hell, you know what that means when the insurance companies start jumping all over this? They are reading the Tea Leaves and getting the picture that security contractors or ‘marine contractors’ on boats, armed with the necessary tools and skills to defeat these thugs, are the way to go.
I also want to commend Zack Phillips for writing such a well researched little article. There is a lot of meat in this thing, and I highly recommend checking out some of the maritime security companies he mentioned. You might be able to get a job with them, by doing a little Google Fu. –Matt
—————————————————————–
Pirate attacks trigger armed guard coverage
Programs protect shipowners against increased liability risk
Dec. 13, 2009
Zack Phillips
Insurers and brokers have begun to offer products that cover or facilitate the use of armed security guards onboard ships to defend against piracy.
But despite the persistence of pirate attacks, the shipping industry remains largely reluctant to put firearms on vessels, observers say.
Shipowners and their underwriters typically have been wary of arming merchant ships, due to a host of potential legal, logistical and safety problems. But in recent months, as pirates off the coast of Somalia have hijacked several ships and attacked scores of others, some insurance products have emerged that would cover the use of armed security personnel to ward off pirates.
“The attitude has changed but they never had this type of scenario before,” said Lars Gustafson, a New York-based senior vp at Marsh Inc.
Despite an international flotilla of naval ships shepherding merchant ships through safe-travel corridors, pirates off the coast of Somalia have hijacked 31 ships in 2009 and attacked 172, compared with 42 hijackings and 111 attacks in 2008, according to figures from the International Maritime Bureau’s Piracy Reporting Center in Kuala Lumpur, Malaysia.
Senior officers in the U.S. and British navies separately have encouraged ship owners to consider the use of armed security personnel on board. The Danish shipping giant Clipper Group announced in November it was carrying up to six Russian marines aboard some of its ships transiting the Gulf of Aden near Somalia.
Wednesday, September 9, 2009
Industry Talk: Congressman Announces Plan to Reform U.S. System to Care for Injured Civilian Contractors
Interesting stuff, and I hope Rep. Cummings can produce something that is supported on both sides of the isle. –Matt
——————————————————————
Congressman Announces Plan to Reform U.S. System to Care for Injured Civilian Contractors
by T. Christian Miller, ProPublica – September 9, 2009
Rep. Elijah Cummings, D-Md., said Wednesday that he will introduce legislation later this year to improve the delivery of medical care to civilian contractors injured while working with the military in Iraq and Afghanistan.
Cummings declined to provide details about his proposal but said he hoped it would reduce the $300 million a year paid by defense contractors to insurance companies.
“The system is broken, and the insurance companies have reaped the benefits,” said Cummings, who pushed for hearings [1] earlier this year after investigations [2] by ProPublica, ABC News and the Los Angeles Times found that insurance carriers routinely denied claims by injured contractors.
Tuesday, July 14, 2009
Industry Talk: Severely Injured as a Truck Driver in Iraq, Jeff Haysom Fights to Rebuild His Life
I wanted to post this as a reminder to all of us, just what happens when you get injured in this kind of work. There are no ‘how to’ manuals on this stuff, nor is your care guaranteed to be complete or even good. The one thing you can do is prepare yourself mentally for the possible outcomes when injured. And if you read through Jeff’s story, as well as the many other stories printed about the subject, you will find that it is no easy fight. Companies like AIG will fight tooth and nail to pay as little as possible to cover your injury. One thing is for sure, either spend the money on a good insurance policy that covers war zones or get a good lawyer, or get both if you can afford it. Also get a good CPA, because you will need it for all the financial headaches involved with this stuff. –Matt
——————————————————————
Severely injured as a truck driver in Iraq, Jeff Haysom fights to rebuild his life
by LEAH BETH WARD
Yakima Herald-Republic
SARA GETTYS/Yakima Herald-Republic
Jeff Haysom sits with one of his family’s goats, Gizmo, at his home in Gleed. While he was working as a civilian contractor in Iraq, Haysom was injured by shrapnel from a bomb that tore into his shoulder and also left him with a traumatic brain injury. Haysom is still active around his home, but tires easily and has trouble remembering things — disabilities that have made it impossible for him to keep a job. Instead, he works around his home caring for his animals including turkeys, chickens and goats. Although he and his wife are still fighting for workers compensation benefits, he says that his injury has forced him to slow down. He says that although it might take him twice as long to complete a task as it did before his injury, he’s grateful for every day and the opportunity to spend time with his family and at his home.