Allianz Global Corporate & Specialty, in a recent report, said African insurance industry may need to prepare for over $1 billion loss in future due to piracy attacks on mega ships.
Allianz disclosed this at the African Insurance Organisation Conference in Marrakesh, Morocco while briefing journalists on key findings of the Allianz Safety & Shipping Review 2016 report.
In the report, the firm said that progress continues on piracy in Africa with incidents down in Nigeria and Somalia.
It noted that although piracy risk remains high, attacks continue to increase in South Asia.
The report said: “Crew kidnapped and held for ransom, doubled to 19 in 2015 with all the result of five attacks off Nigeria. During 2015, risks to shipping in the Middle East Gulf and surrounding waters escalated as politically-charged disputes took hold.
“In Yemen, the ongoing war and blockades had not affected ships sailing through the Gulf of Aden at time of writing, but calls at the country’s ports had been curtailed, with Aden accepting a fraction of the calls it handled before the dispute. In North Africa, the Egyptian Armed Forces officially declared a “state of war” in July 2015.
“Again, the war and disputes there had not had a notable effect on shipping, but with Egypt’s control of the critical shipping point, the Suez Canal, shipping is keeping a watchful eye on events in this country.”
“Operators must remember that the provision of war insurance does not mean that the taking of cargo from this area is safe; insurance should not be viewed as a safety blanket. The industry may need to prepare for a $1billion+ loss in future due on mega ships.
