Navy Insurance Essay Example | Topics and Well Written Essays - 500 words

Navy Insurance - Essay Example The recent rise in costs of operating marine trade and business through losses suffered through piracy has necessitated players in the industry of marine business to invest in the piracy insurance policies. According to UNCLOS (United Nations Convention on the law of the Sea), piracy is a multifaceted issue and takes cognition of all illegal act of detention violence as well as depredation that is directed towards ship or persons, or even cargo on board of the ship on the high seas. With the rise in piracy risks in the high seas, the emerging trend has been the insurance brokers offering marine insurance against piracy at very high premiums as compared to other risk premiums in the 21st century marine business. In particular, the premiums on offer depend on the routes of voyage, as the insurers are aware of the most affected regions by piracy such as the east African shores especially within the shoreline of Somali. Besides, the international community has invested notably in deployi ng military personnel to aid in restoring normalcy in the areas facing such challenges of piracy activity though this has had little effect in influencing the premiums concerning insurance against piracy. Nevertheless, an emerging trend reveals efforts by insurance companies to fund operations by specialized naval ships, which are specially designed and made to have the necessary equipments as well as machinery that would be used to escort cargo ships across the piracy risk prone areas at relatively minimal costs.