The Global Financial Crisis,
International Trade & Piracy:
Impacts on Marine
Insurance Markets
Insurance Information Institute
12 May 2009
Robert P. Hartwig, Ph.D., CPCU, President
Insurance Information Institute  110 William Street  New York, NY 10038
Tel: (212) 346-5520  bobh@iii.org  www.iii.org
Presentation Outline
 The Global Economic Storm: Financial Crisis &
Recession
• Survey of International Economic Growth Statistics
• Industrial Production and Global Supply Chains
• Inflation Trends
 Economic Threats to Marine Insurance Markets
•
•
•
•
Top Causes of Decline in International Trade
Major Trade and Marine Exposure Trends
Merchandise Trade (Import/Export) Analysis by Region
Economic Stimulus Impacts—Global Review
 Financial Strength
• Ratings
• Investment Performance
 Piracy: Trends by Region, Nature of Attack
THE GLOBAL
ECONOMIC
STORM
What Financial Crisis and
Recession Mean for the Marine
(Re)Insurance Industry &
International Trade
6.6%
8.0%
9.1%
0.5%
0.6%
3.0%
1.8%
0.6%
0.6%
2.6%
0.7%
2.0%
1.3%
Steep declines in GDP will negatively
impact trade on a global scale.
6%
2%
2010F
All major economies China are in recession.
8%
4%
2009F
2.0%
10%
2008E
0.7%
12%
2007
2.6%
1.0%
14%
11.9%
Real GDP By Market 2007-2010F
(% change from previous year)
-8%
Euro Area
Germany
Japan
Source: Blue Chip Economic Indicators, 4/10/09 edition.
US
-3.0%
-2.6%
-5.6%
-6%
-3.2%
-4%
-2.8%
-2%
-0.7%
0%
UK
China
Real GDP for Selected Large Trading States,
2007-2010F, (% change from prior yr.)
2008E
5.7%
5.3%
All major economies except
China are in recession
1.0%
1.3%
2.8%
0.9%
2.1%
3.1%
2.2%
0.7%
1%
1.9%
2%
0.5%
3%
2.7%
4%
3.3%
5%
3.5%
6%
2010F
1.0%
7%
2009F
2.1%
2007
-4%
Canada
Brazil
Source: Blue Chip Economic Indicators, 4/10/09 edition.
France
Netherlands
-1.5%
-0.7%
Mexico
-1.4%
-3%
-2.7%
-2%
-2.0%
-1%
-1.8%
0%
Belgium
Real GDP for Selected Large Trading States,
2007-2010F, (% change from prior yr.)
All major economies except
China are in recession
1.6%
2.4%
4.0%
2.1%
6.4%
2.6%
1.1%
2%
2.6%
0.8%
4%
2.6%
5.0%
5.7%
6%
7.7%
10%
3.0%
12%
8%
2010F
6.6%
8.0%
14%
2009F
9.1%
2008E
11.6%
2007
Taiwan
S. Korea
Singapore
Source: Blue Chip Economic Indicators, 4/10/09 edition.
Hong Kong
-0.8%
-3.2%
-6%
-4.8%
-4%
-4.2%
-2%
-0.7%
-2.4%
0%
Australia
China
3.1%
10:4Q
2.3%
1.6%
2.9%
-6%
10:3Q
-4%
2.7%
-2%
10:2Q
-0.2%
-2.1%
-0.5%
0%
0.4%
0.9%
2.8%
2.9%
3.1%
3.6%
2.5%
Recession began in December 2007.
Economic toll of credit crunch, housing
slump, labor market contraction is growing
0.1%
2%
1.6%
0.8%
4%
3.7%
6%
4.8%
4.8%
United States :
Real GDP Growth*
The Q4:2008 decline was
the steepest since the
Q1:1982 drop of 6.4%
-6.3% -6.1%
10:1Q
09:4Q
09:3Q
09:2Q
09:1Q
08:4Q
08:3Q
08:2Q
08:1Q
07:4Q
07:3Q
07:2Q
07:1Q
2006
2005
2004
2003
2002
2001
2000
-8%
*Blue bars are Estimates/Forecasts from Blue Chip Economic Indicators.
Source: US Department of Commerce, Blue Economic Indicators 4/09; Insurance Information Institute.
GDP Growth: Advanced &
Emerging Economies vs. World
1970-2010F
The world economy is forecast to grow
by 0.5% in 2009, but could shrink for
the first time since WW II —by 1% to
2% according to the World Bank.
10.0
8.0
Emerging economies
(led by China) are
expected to grow by
3.3% in 2009
6.0
4.0
2.0
0.0
Advanced economies
Emerging and developing economies
10
08
06
04
02
00
98
96
94
92
90
84
82
80
78
76
74
72
70
-4.0
88
-2.0
86
Advanced economies will
shrink by 1.9% in 2009,
dampening energy demand
World
Source: International Monetary Fund, World Economic Outlook Update, Jan. 28, 2009; Ins. Info. Institute.
Industrial
Production
Sharp Decline in
Production Spread by
Global Supply Chains
Global Industrial Production Is in a
Tailspin, Signaling Weakness in Trade
Annualized 3-Month Percent Change
Industrial demand for energy
has been particularly hard hit
15.0
10.0
5.0
0.0
-5.0
Global industrial production was
down 13% in late 2008, adversely
impacting energy demand
-10.0
-15.0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Source: International Monetary Fund, World Economic Outlook Update, Jan. 28, 2009; Ins. Info. Institute.
Auto/Light Truck Sales,
1999-2010F (Millions of Units)
Weakening economy, credit
crunch are hurting auto sales;
Gas prices less of a factor now.
19
18
17.4
17.8
17.5
17.1
16.6
17
16.9
16.9
New auto/light truck sales
are expected to experience a
net drop of 6.7 million units
annually by 2009 compared
with 2005, a decline of
39.6% and the lowest level
since the late 1960s
16.5
16.1
16
15
Impacts of falling auto sales will
have a less pronounced effect on
auto insurance exposure growth
than problems in the housing
market will on home insurers
14
13
12
13.1
12.0
11
10.2
10
99
00
01
02
03
04
05
06
07
08
09F
10F
Source: US Department of Commerce; Blue Chip Economic Indicators (4/09); Insurance Information Inst.
Length of US Recessions,
1929-Present*
Months in Duration
50
45
43
“We will rebuild.
We will recover.”
40
35
--President Barack Obama
addressing a joint session of
Congress
30
25
Current recession began in
Dec. 2007 and is already the
longest since 1981. It is now
also the longest recession since
the Great Depression.
February 24, 2009
20
16
13
15
11
8
10
10
8
10
18
16
11
6
8
8
Jul.
1990
Mar.
2001
5
0
Aug.
1929
May
1937
Feb.
1945
Nov.
1948
July
1953
Aug.
1957
Apr.
1960
Dec.
1969
Nov.
1973
* As of May 2009, inclusive
Sources: National Bureau of Economic Research; Insurance Information Institute.
Jan.
1980
Jul.
1981
Dec.
2007
Length of U.S. Business Cycles,
1929-Present*
Duration (Months)
120
110
100
Contraction
Expansion Following
Average Duration**
Recession = 10.4 Months
Expansion = 60.5 Months
90
106
Length of
expansions
greatly
exceeds
contractions
58
80
80
70
60
50
50 43
45
37
40
39
92
73
36
24
30
20
13
10
Month 0
Recession
Started
120
Aug.
1929
May
1937
8
Feb.
1945
11
Nov.
1948
10
July
1953
8
Aug.
1957
10
Apr.
1960
11
Dec.
1969
16
12 16
6
Nov.
1973
* As of May 2009, inclusive; **Post-WW II period through end of most recent expansion.
Sources: National Bureau of Economic Research; Insurance Information Institute.
Jan.
1980
Jul.
1981
18
8
Jul.
1990
8
Mar.
2001
Dec.
2007
Inflation Trends
Significant Moderation
Should Help Reduce
Severity Trends, but
Reduces Merchandise
Values
Inflation Rates for Largest European Economies &
Euro Area, 2007-2010F, (% change from prior yr.)
2008E
2009F
2010F
4.6%
5%
Inflation is down sharply
across Europe, reducing
claim severity concerns
1.9%
1.8%
1.6%
0.8%
1.6%
1.5%
2.6%
2.8%
1.8%
1.5%
0.5%
1%
0.7%
1%
0.6%
2%
1.3%
1.5%
2%
0.4%
3%
2.1%
3%
2.3%
4%
2.3%
2.8%
3.3%
4%
3.7%
5%
1.3%
2007
0%
Euro Area
Germany
UK
Source: Blue Chip Economic Indicators, 3/10/09 edition.
France
Netherlands
Belgium
Annual Inflation Rates
(CPI-U, %), 1990-2010F
Inflation peaked at 5.6% in August 2008 on
high energy and commodity crisis. The
recession and the collapse of the commodity
bubble have produced temporary deflation.
6.0
5.0
4.9 5.1
3.8
4.0
3.0 3.2
3.0
2.0
3.3 3.4
2.9 2.8
2.4
3.0
2.6
2.5 2.3
3.8
2.8
1.9
1.5
1.6
1.3
1.0
0.0
(1.0)
(0.7)
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09F 10F
Sources: US Bureau of Labor Statistics; Blue Chip Economic Indicators, April 10, 2009 (forecasts).
Baltic Dry Index: Shipping Costs of
Goods Plunged as Trade Weakens
The Baltic Dry Index, a measure of
shipping costs, plunged more than
90% after the collapse of the
commodities bubble in late 2008
Sources: InvestmentTools.com accessed 11 May 2009.
ECONOMIC THREATS
TO MARINE
INSURANCE
MARKETS
Caught in the
Economic Storm
Top Causes of Decline
in Global Trade
1. GLOBAL RECESSION


Global nature of recession and rapid spread throughout the world
Downturn is deep and broad, sharply reducing imports/exports
2. GLOBAL SUPPLY CHAINS


Finished products often contain component parts from many countries
with ultimate buyers in still others
Global supply chains act as a contagion mechanism that transmit and
accelerate economic disturbances (positive and negative)
3. SHORTAGE OF TRADE FINANCING (TRADE CREDIT)
•
•
Bursting of credit bubble has made obtaining trade credit difficult and
expensive to obtain
Renders some trade noneconomical
4. FUTURE CONCERN: PROTECTIONISM
• Countries may erect or increase tariffs and quotas to protect domestict
producers
• This was a disastrous policy in 1930s
• Ultimate reduces global trade flows and deepen global recession
Source: World Trade Organization; Insurance Information Institute.
Global Merchandise Exports, 1979-2009F
($ Trillions and Annual Growth Rate)
16
Merchandise Exports
% Change
20%
14
15%
12
10%
10
5%
8
0%
6
-5%
4
2
25%
Trade is expected to decline by its
largest amount in decades in 2009
-15%
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
0
-10%
Source: World Trade Organization; Insurance Information Institute.
Growth Rate in Exports
Merchandise Exports ($ Trillions)
18
Recessions routinely
depress trade, but the
current global
financial crisis is
much more severe
Major Economic Trends Affecting
Marine Insurance Markets
 All Major World Economies Except China Are in Recession
 Demand for Imported Products Has Plunged Globally
 Global Trade Expected to Shrink by 9% in 2009, the First
Decline Since 1982 and the Largest Drop Since World War II
•
Trans-Pacific containerized trade was down 3.9% in 2008 with a 4.1%
drop projected for 2009
 Immense Amounts of Excess Shipping Capacity is Driving
Down Shipping Prices
• Baltic Dry Index of shipping prices fell 94% from record high 11,793 in
May 2008 to 663 in December 2008
 As Much as 11.3% of Global Shipping Fleet is Idle
 As Much as 45% of the New Containership Capacity
Scheduled for Delivery in 2010 Will Be Delayed or Cancelled
 Concern that Rising Protectionist Sentiments Could Increase
Tariffs, Quotas and Further Hurt Trade and Ultimately
Deepen Global Recession
Implications for
Marine Insurance Markets
 Decline in Shipping Volume Due to Collapse in Trade is
Reducing Exposure (Vessels and Cargo)

Likely reducing claim frequency
 Premium Volume is Flat or Falling in Most Marine Segments
 Return of Major Catastrophic Losses (Hurricane Ike) Hurt
Offshore Energy Segment
 Competition Remains Strong in Many Marine Segments,
Potentially Hurting Underwriting Performance
 Global Economy Will Recover Slowly, Hurting Premium
 Investment Earnings Are Declining as Returns Suffer
 Global Interest Rates Have Dropped, Insurers Locking in
Lower Returns for Years to Come
 If Major Economies Become Protectionist, Marine Insurers
Will See Further Erosion of their Business
 Financial Collapse Means More/Different Regulation of
Insurers Globally, Especially in US (Federal Regulation)
Real GDP and Trade Growth:
OECD Countries: 2007:Q1—2008:Q4
Global trade (imports and exports) fell sharply
in late 2008 as major economies entered
recessions. WTO estimates global trade will
shrink 9% in 2009
Sources: World Trade Organization: http://www.wto.org/english/news_e/pres09_e/pr554_e.pdf
Growth in Volume of Merchandise Trade
and GDP, 1998 – 2008 (Annual % Change)
Merchandise
trade volume is
shrinking as
major economies
enter recession
Sources: World Trade Organization: http://www.wto.org/english/news_e/pres09_e/pr554_e.pdf
Merchandise Trade Exports by Region,
2007 and 2008, (% change from prior yr.)
0%
World
US
South/ EU
Central
America
CIS
13.0%
7.0%
2.5%
8.5%
4.0%
3.0%
4.5%
3.0%
7.5%
6.0%
0.0%
2.0%
5%
6.0%
10%
7.0%
5.5%
15%
3.5%
20%
3.0%
1.5%
Global merchandise
trade growth fell by 2/3
in 2008 and will likely
be negative in 2009
9.5%
25%
2008
19.5%
2007
Africa Middle China Japan
East
Sources: World Trade Organization: http://www.wto.org/english/news_e/pres09_e/pr554_e.pdf
India
Monthly Merchandise Exports and
Imports, Jan. 2006- Feb. 2009 ($ Bn)
Exports -----
Exports -----
Imports------
Imports------
Exports -----
Exports -----
Imports------
Imports------
Sources: World Trade Organization: http://www.wto.org/english/news_e/pres09_e/pr554_e.htm#appendix_chart1
Monthly Merchandise Exports and
Imports, Jan. 2006- Feb. 2009 ($ Bn)
Sources: World Trade Organization: http://www.wto.org/english/news_e/pres09_e/pr554_e.htm#appendix_chart1
Monthly Merchandise Exports and
Imports, Jan. 2006- Feb. 2009 ($ Bn)
Sources: World Trade Organization: http://www.wto.org/english/news_e/pres09_e/pr554_e.htm#appendix_chart1
THE $2.75 TRILLION
GLOBAL ECONOMIC
STIMULUS
Stimulus Spending Will
Have Only a Minor Impact
on Trade
Announced Economic Stimulus
Packages Worldwide (US$ Bill)*
$600
$500
$400
$300
Governments around the world are
seeking to soften the economic blow
through spending. Deficits as a share of
GDP will mushroom leading to a
potential inflationary threat and higher
interest rates the future.
P/C insurers will provide insurance
necessary for stimulus projects and will
benefit from enhanced economic growth
U
M .S.
ex
ic
o
C
hi
le
$0
G
er
m
a
Fr n y
an
ce
U
.K
Sp .
ai
n
N
I
et ta
he ly
rl
a
H nd
un s
Po gar
rt y
u
Sw gal
ed
e
C n
hi
So J na
u a
N th pan
ew K
Ze ore
al a
a
A nd
us *
tr
al
i
In a
di
D a
ub
ai
$100
$5.8
$2.0
$200
As of March 2009,
these countries
have approved or
proposed at least
US$2.3 trillion in
stimulus spending
$11.3
$28.0
$7.4
$13.7
$36.8
$700
$787
$586.1
$485.9
$800
U.S. stimulus comprises a mix of
spending, tax relief and aid to states
$130.4
$33.0
$40.8
$75.3
$8.0
$7.6
$6.9
$2.8
$1.8
$900
*As of March 2009.
Sources: Wall Street Journal, January 8, 2009 with updates by I.I.I.; Institute of International Finance
and Brookings Institute.
FINANCIAL
STRENGTH &
RATINGS
Industry Has Weathered
the Storms Well
US P/C Insurer Impairment Frequency
vs. Combined Ratio, 1969-2007
Combined Ratio
115
Combined Ratio after Div
P/C Impairment Frequency
2
1.8
1.6
1.4
110
1.2
1
105
0.8
100
95
0.4
2007 impairment rate was a record low 0.12%,
one-seventh the 0.8% average since 1969; Previous
record was 0.24% in 1972
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
90
0.6
Source: A.M. Best; Insurance Information Institute
0.2
0
Impairment Rate
120
Impairment rates
are highly
correlated
underwriting
performance and
could reached a
record low in 2007
Summary of A.M. Best’s P/C Insurer
Ratings Actions in 2008*
P/C insurance is by
design a resilient in
business. The dual
threat of financial
disasters and
catastrophic losses are
anticipated in the
industry’s risk
management strategy.
Upgraded, 59 , 4.0%
Downgraded, 55 ,
3.8%
Initial, 41 , 2.8%
Under Review, 63 ,
4.3%
Other, 59 , 4.0%
Despite financial market
turmoil, high cat losses
and a soft market in
2008, 81% of ratings
actions by A.M. Best
were affirmations; just
3.8% were downgrades
and 4.0% upgrades
Affirm, 1,183 , 81.0%
*Through December 19.
Source: A.M. Best.
34
Historical Ratings Distribution,
US P/C Insurers, 2008 vs. 2005 and 2000
2008
Vulnerable*
7.9%
A++/A+ and
A/A- gains
A++/A+
10.8%
Vulnerable*
12.1%
2000
2005
A++/A+
9.2%
C/CC++/C+ 0.6%
1.9%
B/B6.9%
D
0.2%
E/F
2.3%
A++/A+
11.5%
B++/B+
21.3%
B++/B+
26.4%
B++/B+
28.3%
A/A52.3%
A/A60.0%
A/A48.4%
P/C insurer financial strength
has improved since 2005
despite financial crisis
Source: A.M. Best: Rating Downgrades Slowed but Outpaced Upgrades for Fourth Consecutive Year, Special Report,
November 8, 2004 for 2000; 2006 and 2009 Review & Preview. *Ratings ‘B’ and lower.
Investment
Performance
Investments are a Principal
Source of Declining
Profitability
Property/Casualty Insurance Industry
Investment Gain:1994- 20081
$ Billions
$64.0
$57.9
$60
$52.3
$51.9
$47.2
$50
$59.4
$56.9
$48.9
$36.0
$40 $35.4
$30
$45.3
$44.4
$42.8
$55.7
$31.4
Investment gains fell by 51% in
2008 due to lower yields, poor
equity market conditions
$20
$10
1Investment
Q
3
08
:
07
06
05
*
04
03
02
01
00
99
98
97
96
95
94
$0
gains consist primarily of interest, stock dividends and realized capital gains and losses.
2006 figure consists of $52.3B net investment income and $3.4B realized investment gain.
*2005 figure includes special one-time dividend of $3.2B.
37
Sources: ISO; Insurance Information Institute.
PIRACY
An Ancient Scourge
st
Impacts 21 Century
Marine Insurers
Prime Locations for Piracy
Attacks, 2008
Seven
locations
accounted
for more
than twothirds, or
216 of a
total 293
reported
piracy
attacks in
2008
Tanzania, 14
Somalia, 19
Vietnam, 11
Bangladesh, 12
Nigeria, 40
Indonesia, 28
Source: ICC International Maritime Bureau (IMB) 2008 annual report.
Gulf of Aden, 92
Monthly Worldwide Piracy Attacks,
Jan 2008 - Mar 2009
45
40
35
Attacks reached a new record in March
2009 with 41 attacks, after peaking in
September 2008 with 39 attacks.
November 08 (37) and January 09 (36) 39
were also busy months.
30
41
37
36
30
30
24
25
20
15
20
19
14
20
25
24
20
16
10
5
0
Jan - Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar08
08
08
08
08
08
08
08
08
08
08
08
09
09
09
Source: ICC International Maritime Bureau (IMB) First Quarter 2009 and 2008 annual reports.
Total Piracy Incidents Worldwide
By Region, 2008
200
A total of 293 incidents of piracy
and robbery against ships were
reported in 2008 – an increase of
more than 11 percent on 263
incidents in 2007 – due to the
unprecedented number of attacks
in the Gulf of Aden.
189
180
160
140
120
100
80
55
60
40
14
20
23
10
2
0
Africa
America
Far East
Indian Sub
Continent
Rest of the
World
Source: ICC International Maritime Bureau (IMB) 2008 annual report.
S E Asia
Countries Where Five or More
Incidents Have Occurred, 2008
100
90
80
70
60
50
40
30
20
10
0
92
40
In Jan-Mar 2009, a total of 61 attacks were
reported for Somalia and the Gulf of
Aden, continuing 2008’s trend. Out of the
61 attacks, nine vessels were hijacked
and 157 crew members taken hostage.
28
19
5
7
14
6
Pe
ru
Ph
ili
Si
pp
ng
in
ap
es
or
e
St
ra
its
So
m
al
ia
Ta
nz
an
ia
Vi
et
na
m
ia
In
d
A
of
ul
f
In
d
de
n
a
ha
n
G
10
on
es
ia
M
al
ay
si
a
N
ig
er
ia
10
7
G
sh
12
la
de
an
g
B
A total of 111 incidents were reported for
Somalia and the Gulf of Aden in 2008, up
nearly 200 percent on 2007. A total of 42
vessels were hijacked by Somali pirates and
815 crew taken hostage.
Source: ICC International Maritime Bureau (IMB) First Quarter 2009 and 2008 annual reports.
11
Piracy Attacks By Vessel Type, 2008
Container
Bulk Carrier
Chemical Tanker
General Cargo
Tanker
TUG
Product Tanker
Fishing Vessel
Yacht
Refrigerated Cargo
LPG Tanker
Supply Ship
Passenger Ship
Vehicle Carrier
FPSO
Cement Carrier
Research Vessel
DHOW
Offshore Support
Heavy Load Carrier
NA
Ro-Ro
Crew Boat
Barge Carrier
Lift Barge
Livestock Carrier
3
3
2
2
1
1
1
1
1
1
1
1
1
1
0
6
5
9
9
8
10
16
16
30
39
38
49
48
All types of vessels –
from cargo ships to
passenger ships and
fishing vessels – have
been attacked.
20
30
Source: ICC International Maritime Bureau (IMB) 2008 annual report.
40
50
60
Flag States of Vessels Attacked
10 Times or More, 2008
Panama
52
25
Singapore
Liberia
19
Marshall Islands
15
Antigua and Barbuda
14
Cyprus
14
Hong Kong
14
12
Bahamas
Malta
10
Malaysia
10
0
10
20
The flag of
registry subject to
the highest
number of attacks
in 2008 was
Panama, followed
by Singapore and
Liberia.
30
Source: ICC International Maritime Bureau (IMB) 2008 annual report.
40
50
60
Managing Country of Ships
Attacked 10 Times or More, 2008
Germany
41
Singapore
31
Greece
The managing
country of ships
subject to the
highest number of
attacks in 2008
was Germany,
followed by
Singapore and
Greece.
23
Japan
16
Norway
12
U.K.
12
China
12
11
Malaysia
10
Hong Kong
0
10
20
30
40
Source: ICC International Maritime Bureau (IMB) 2008 annual report.
50
60
Total Piracy Incidents Worldwide
2003 - Q1:2009
450
445
400
329
350
A total of 293 incidents of piracy and
robbery against ships were reported in
2008 – up 23 percent since 2006 – the
second consecutive year of increases.
293
276
300
239
250
263
200
Attacks in the first quarter of
2009 have almost doubled
from 53 in Q1 2008 to 102 in
Q1 2009 – due almost entirely
to increased Somali pirate
activity off the Gulf of Aden.
150
100
50
102
0
2003
2004
2005
2006
2007
2008
2009 Q1*
Source: ICC International Maritime Bureau (IMB) First Quarter 2009 and 2008 annual reports.
Types of Arms Used During
Attacks, 2008
Not stated, 80,
Pirates
boarding
27%
vessels are
better
armed and
prepared to
assault and
injure
Knives, 68,
crew. Total
23%
incidents in
which guns
were used
rose 93
percent
2007-2008.
Source: ICC International Maritime Bureau (IMB) 2008 annual report.
Other weapons, 6,
2%
Guns, 139,
48%
Types of Violence to Crew, 2008
Kidnap/Ransom, 42,
4%
Crew threatened, 9,
1%
Crew assaulted, 7, 1%
Crew injured, 32, 3%
Crew killed, 11, 1%
Missing, 21, 2%
Taken hostage, 889,
88%
Worldwide in 2008 a total of 49
vessels were hijacked, 889 crew
taken hostage and a further 46
vessels fired upon – surpassing
all previous records.
Source: ICC International Maritime Bureau (IMB) 2008 annual report.
Total Maritime Hostage
Incidents Worldwide, 2003-2008
900
800
700
600
Worldwide a total of 889 crew were
taken hostage in 2008, an increase of
200 percent over 2007! In the first
three months of 2009, 178 crew were
already taken hostage.
500
400
889
440
359
292
300
188
148
200
178
100
0
2003
2004
2005
2006
2007
Source: ICC International Maritime Bureau (IMB) 2008 annual report.
2008
Q1 2009
Insurance Information
Institute On-Line
THANK YOU FOR YOUR TIME AND
YOUR ATTENTION!
50