Oslo-headquartered P&I and defense insurance mutual Skuld is offering a reduction in rates for Maritime Kidnap & Ransom insurance.
Skuld has now been offering competitive pricing and tailored wordings in this area for nearly two years and says it has become a mature market.
The insurer says that piracy still presents a high risk, particularly when weather conditions are favorable for pirate skiffs.
"However," says Skuld, "despite the higher risk at the moment due to the improved weather our underwriters are prepared to reflect the lower than expected level of recent losses with large reductions in pricing."
Skuld is offering what it says is a "large reduction" in basic pricing.
It is offering an additional 15 percent reduction in prices for those vessels staying within 75 nm of the coast of Iran, Pakistan and India whilst transiting the breach area between Persian Gulf and India/Far East (see map).
"The rating for this coverage has become more complex to offer reductions to those owners with armed guards, improved security or higher freeboards," says Skuld. "For those vessels using the corridor within 75 nm of the coast we are also able to offer coverage for vessels with lower freeboards than would normally be the case."
Skuld says it also has the ability to offer a larger limit of $7,500,000 and "stand alone" Loss of Hire coverage.
April 9, 2012