OLDWICK, N.J., December 16, 2013— Insurance industry executives discuss how risk mitigation measures have reduced maritime piracy losses, particularly off the East African coastline, but warn against complacency. It is estimated that more than USD 400 million was claimed in ransoms for pirate acts from 2005-2012, according to a report from the United Nations Office on Drugs and Crime. Lars Gustafson, senior vice president, global marine practice, Marsh, said the financial impact is actually much higher, especially in cases of a kidnapping where logistics can be costly and difficult. John Barnwell, global marine insurance product leader, Allianz Global Corporate & Specialty, said pirates have increasingly become more organized, and now include cargo theft alongside kidnappings. The two executives said strategies such as water cannon use, maneuvers, blinding lasers and armed guards have helped to reduce the number of pirate attacks, and as a result, sharply reduce the cost of premiums.
People who appear in this episode include:
· Lars Gustafson, Senior Vice President, Global Marine Practice, Marsh; and
· John Barnwell, Global Marine Insurance Product Leader, Allianz Global Corporate & Specialty.
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