Insurance firms in London plan to defeat Somali piracy by creating a private fleet designed to escort vessels across the Gulf of Aden.
Insurers devised the Convoy Escort Programme (CEP), which could come into action by the summer, in a bid to reduce the costs of insuring vessels and their cargo and crew. Sean Woollerson, a partner in the marine, oil and gas division at insurance broker Jardine Lloyd Thompson (JLT) and a key designer of the plan, has estimated that approximately US$27.5 million would be needed to purchase 18 secondhand vessels.
Insurance underwriters, including Ascot Underwriting, are also working the project on. The shipping industry has already shown its support for the initiative and the Baltic and International Maritime Council (Bimco) has agreed to help facilitate the programme.
The aim is for shipowners to buy the armed escort service, packaged with seven days of war-risk cover from Ascot Underwriting’s Lloyd’s Syndicate 1414. In doing so, the shipowner will not need to pay the normal higher premium required to transit high-risk pirate areas. It has been reported that each insurance-funded vessel will carry eight armed security personnel, four crew and inflatable speedboats.
Woollerson said the programme would allow any vessel looking for protection when transiting the Gulf of Aden to do so through its Lloyd’s of London broker. The UK Royal Navy recently captured a group of suspected pirates operating in the Gulf of Aden. Attacks on vessels in the area have been escalating.
The UN’s International Maritime Organisation (IMO) has also launched a new initiative to combat piracy. Secretary General Efthimios Mitropoulos announced a six-point plan to stop the continuing growth of piracy.
It included increasing political pressure to secure the release of hostages; reviewing guidelines and promoting compliance with best practice; promoting greater levels of support from navies; promoting anti-piracy co-ordination between countries, regions, organisations and industry; assisting states to deter and bring to justice pirates; and providing care for those attacked or hijacked by pirates, and for their families.
Source : Ifw
