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Piracy and war risks in shipping - DNK perspective

Den Norske Krigsforsikring for Skib- Gjensidig Forening -. 2. Overview. War risk insurance DNKAttention shifting from traditional risks of war to piracyAreas most affected by piracySomalia and the Gulf of AdenHijack for ransom issuesContingency planningSummary. Den Norske Krigsforsikr

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Piracy and war risks in shipping - DNK perspective

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    1. Piracy and war risks in shipping - DNK perspective Svein Ringbakken Director Insurance The Norwegian Shipowners Mutual War Risks Insurance Association (DNK)

    2. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 2 Overview War risk insurance DNK Attention shifting from traditional risks of war to piracy Areas most affected by piracy Somalia and the Gulf of Aden Hijack for ransom issues Contingency planning Summary

    3. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 3 War risk insurance War risks excluded by traditional marine insurers as risk was unpredictable & gave rise to extraordinary cumulative losses The risks are not as remote as one could be tempted to think Speciality product within the insurance industry Low frequency but losses can be considerable Piracy defined as war risk under the Norwegian Plan

    4. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 4 DNK Mutual war risks insurance association for Norwegian shipowners 2700 ships & rigs USD 150 B total insured values Capacity in excess of USD 1 B Broad cover & competitive annual and AP rates Aim to protect members from short term market fluctuations Utilising financial strenght to provide special covers not available in the commercial market Supporting loss prevention also in the war risks market

    5. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 5 Attention shifting from traditional risks of war to piracy

    6. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 6 Global piracy year to date

    7. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 7 Horn of Africa year to date

    8. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 8 Gulf of Aden year to date

    9. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 9 Somalia and the Gulf of Aden More than 40 hijackings and more than 70 failed attempts More than 200 seafarers in captivity Well known modus operandi Hijacking for ransoms Increased public awareness & naval presence Final solution not on sea, but on land naval units must be withing 30 nm to respond effectively Military action exception not the rule

    10. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 10 Specific hijack for ransom issues Hijacks off Somalia will be followed by ransom demand K/R consultants/Negotiators/Communicators PR/Media Crew & families Ransom Legal & Compliance issues Contingency planning

    11. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 11 Contingency planning Vessel Ship Security Plan Drills Journey planning (incl review of up to date info) Anti-piracy measures Arms or armed guards? Company Resources on contract/use of consultants K&R/media/lawyers Must be prepared to tie up resources one month

    12. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 12 Summary Attacks continue despite naval presence Ships and companies must prepare for situation Expensive for companies and harrowing for crews and families Prepare, plan and conduct drills Implement anti-piracy measures Utilise offers for naval protection when possible and follow advice Access available advice NR, IMB, Risk Intelligence etc.

    13. Den Norske Krigsforsikring for Skib - Gjensidig Forening - 13 Thank you for your attention !

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