Between 2004 and 2008, marine insurance premiums have reported a progression comprised between 5% and 10%.
However, the surge of maritime piracy in Africa [4], especially on the coasts of Somalia and the Gulf of Aden, along with the international downturn may harm the market which is likely to see its turnover dwindle down by 10%.
In an effort to cope with such a prospect, a specific product known as “Kidnapping and extortion” has recently been proposed to ship owners by insurers.
The services provided include reimbursement of the ransom, the intervention of a crisis management specialist, communication costs, hostage counselling fees and ship owners’ possible future losses.
Amount invoiced: 30 000 USD for a passage to the Gulf of Aden, insurance premiums are negotiated on the case per case basis.