Piracy Spurs Insurers to Extend Nigeria War-Risk Zone

Maritime Security.Asia (Business Week)

4 August 2011

Piracy Spurs Insurers to Extend Nigeria War-Risk Zone

Aug. 4 (Bloomberg) — Marine insurers extended a war-risk zone for Nigeria, Africa’s largest oil producer, and included waters off neighboring Benin for the first time as piracy attacks increase.

The Joint War Committee, which represents Lloyd’s of London underwriters and other insurers, listed the areas as higher-risk for shipping on Aug. 1, Lloyd’s Market Association senior executive John Gurtenne said by phone. The Nigerian risk zone now extends to 200 nautical miles (230 miles) offshore.

The declaration lets underwriters charge an additional premium based on the value of ships entering the area, according to Gurtenne. Pirates attacked or tried to strike 10 vessels off Benin or in the Gulf of Guinea in June and July, based on reporting to the International Maritime Organization, the United Nations’ shipping agency.