Piracy and political risks

Issue #4

Political risk is a liability underwritten by (re)insurers covering a range of perils from terrorism to state appropriation. Political risk also poses an indirect risk in many other lines of business. This was clearly illustrated by the rise in Somali piracy that commenced in 2004-2005.

In response to the upsurge in Somali piracy, the Centre organised a Client Forum, bringing together (re)insurers with marine representative bodies, lawyers, political experts, naval and merchant shipping captains. The event took place in May 2009, shortly after US military forces helped free the cargo ship Maersk from pirate control.