Posts Tagged ‘insurance’

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Insuring against the risks of sharia

February 1, 2011

Has your business been damaged or your loved one injured by a protester?  Worry no more, because civil unrest within the Islamic world has led to yet another insurance invention:  riot insurance.

From ANSAmed on Jan. 24 (h/t GoV):

Algeria: Insurance Firms Prepare Coverage against Riots

ALGIERS, JANUARY 24 – Insurance companies operating in Algeria are to ask the authorities for permission to launch a new product offering coverage to public customers against potential disorder and riots. Insurance of this kind currently exists only for businesses.

The announcement was made by the Director General of Alliance Assurances, Hassen Khelifati, during a press conference marking the launch of a new insurance contract with Renault. Demand for this type of product, he added, increased significantly after the latest unrest to break out across Algeria at the beginning of January. An official request will be made to the Ministry of Finance in the next few days.

Let’s just leapfrog over all these single-issue insurance policies and create comprehensive jihad insurance that would provide compensation to victims and their families for hijackings, beheadings, abductions for ransom, piracy, and wife beating.

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Piracy spawns booming insurance sector

November 23, 2010

A finance industry publication called Out of the Storm News published an illuminating interview on Nov. 8 with executive Greg Bangs about the growing market for piracy insurance.  Rather than get slowed down, shipping companies would rather pay ransoms as quickly as possible to their crews’ Muslim captors, necessitating a typical insurance policy of $3-5 million in coverage.

Naturally it’s a good market for insurers.  But it’s even better for the pirates.  In its entirety:

Pirates and Piracy Insurance

By Lena Goodwin

The majority of pirates come from Somalia, which has not had a functional government in more than 15 years.  At current, pirates in this region are holding 19 ships with 428 hostages.

The primary industry at target appears to be oil tankers — however it is not the oil the pirates are after, but something more valuable, the people.  The loot these days is in the ransom.

If there is a delay in shipment, companies lose money, so the reality is that most companies choose to pay the asked ransoms.

And as a result, piracy insurance was born.

We recently captured an interview with Greg Bangs, Worldwide Product Manager for Crime and Kidnap and Ransom Insurance, at the Chubb Group of Insurance Companies, regarding his thoughts on pirates, insurance and the current trends in this market.

OOTS:    Do you feel piracy is on the rise? If so, why?

GB:        Piracy is definitely on the rise and is a huge problem in Somalia. As of nine months 2009 there were 34 hijackings, compared to 35 hijackings for the same period this year.  Although this is a seemingly slight rise in hijackings, the organization of the attacks is better both in development and execution. The region suffers from two distinct monsoon seasons which hampers the pirates’ efforts during the summer and the winter periods. But, as soon as the monsoon seasons pass, the attacks increase.  We are also seeing the attacks increase in Nigeria and Indonesia.  The pirates are getting more aggressive; they are boarding vessels, assaulting crew members and stealing from the ship itself.

OOTS:    What are the main items stolen, the most valuable loot, as it were, and why?

GB:        The most valuable “item” is clearly the crew. The vessel and the cargo are important, but the pirates’ primary reason for hijacking the ship are the people on board and the hefty ransom they hope these individuals will bring.

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