Insurers face tougher times as Somali piracy drops

Reuters ^ | 9/21/2012

[markomalley]

A dramatic fall in pirate attacks off the Somali coast is forcing down the cost of piracy insurance for commercial ships, taking the shine off a fast-growing and lucrative market for London-based insurers.

International navies have cracked down on pirates, including strikes on their coastal bases, and ship firms are increasingly using armed guards and defensive measures on vessels including barbed wire, scaring off Somali seaborne gangs.

That reduced the number of incidents involving Somali pirates to just 69 in the first half of 2012, compared with 163 in the same period last year, according to watchdog the International Maritime Bureau.

[markomalley]

Nothing like finding the cloud amidst the silver lining.

[Bitsy]

Anytime insurance rates are driven down is a good thing IMHO. Since Isaac, my insurance premiums went up to $4,300 per year with a $4,000 deductable. That might not seem a lot in other parts of the country but it is a whole lot to me, And, I think of the elderly retired on fixed incomes trying to put food on the table and insure their life long homes against destruction. So, I’m happy for the shipping industry. I hope they pass on their savings to the consumer, right.

[KarlInOhio]

If it is anything like normal insurance they are probably raking in the cash even more. A significant reduction in incidents and payout would be matched with a slight decrease in premiums. Cha-ching!

[762X51]

While barbed wire may be credited with reducing the incidences of piracy, Navy SEALs snipers shooting the pirates in the head GUARANTEES that there will be no more swashbuckling on the part of the recipients.

[LearsFool]

I’m pondering similar headlines...

“Insurers face tougher times as number of auto accidents drops”

“Insurers face tougher times as number of house fires drops”

“Police departments face tougher times as crime rates drop”

“Doctors face tougher times as disease rates drop”

“Politicians face tougher times as self-government increases”

“Teachers face tougher times as people self-educate”