
53
contemporary piracy: tho who, the why and the where
risks are becoming unacceptably high; when that has happened in the past 
it  has  been  insurers  who  have  pressed hardest  for  action.  however,  the 
regularly repeated assertion that piracy leads directly to higher insurance 
premiums appears to be unsupportable.
146
 Although the industry does rec-
ognise that piracy is a problem it does not regard it as serious; in fact it does 
not even account for piracy claims separately. Maritime disorder generally, 
however, it does see as a serious issue.
147
 
Other, less tangible, costs result from the diversion of investment into 
security and away from more productive activity. ere can be diversion 
into  active  measures  such  as  electric  fences  around  ships’  rails and  even 
armed  escorts,  or  more  passive  measures such  as  improved  communica-
tions and alarms. Looking even more broadly, it is necessary to take into 
account the disruption to the efficient operation of the economy and the 
disincentive effect that pirate activity can have on the business community 
to continue or expand their activities, or for new entrants to come into the 
market.
148
 Once again, all these considerations are largely hypothetical. 
One cost that is far from hypothetical is the human cost in terms of 
numbers killed and traumatised.
149
 It must never be forgotten although 
all too often this appears to be the case.
150
 Seafarers even on large ships 
are  apprehensive  and  even  afraid  when  they  pass  through  pirate-prone 
areas.  ose  that  have  suffered  attacks  are  often  unwilling  to  return  to 
sea.
151
 Security is primarily the responsibility of shipping companies but 
146  Ibid., p. 175.
147  See M.J. peterson, ‘An historical perspective on the incidence of piracy’, in El-
len, Piracy at Sea, pp. 42-3; also Martin N. Murphy, ‘Slow alarm: e response 
of the marine insurance industry to piracy and maritime terrorism’, Maritime 
Studies, no. 148, May/June 2006, pp. 1-14. 
148  Anderson, ‘piracy and world history’, p. 85.
149  Gottschalk and Flanagan, Jolly Roger with an Uzi, pp. 20-1; Eric Ellen, ‘Bring-
ing piracy to Account’, Jane’s NI, April 1997, p. 29. Margaret Ryan, ‘Captain 
counts the cost of piracy’, BBC News, 2 Feb. 2006. e IMB is reluctant to put 
a price on piracy because, in its view, it detracts from the real cost—the danger 
to crews: pottengal Mukundan, interview with author, April 2004. 
150  Interview with Captain John Swain, Dec. 2007. Douglas Stevenson, a director 
of the Seamen’s Church Institute of New York and New Jersey, makes the point 
that crew members who have been the victims of piracy are compensated for 
the loss of their belongings but never for the long-term effects of the physical 
and mental trauma, which although the precise numbers are unknown, can be 
so severe that they leave the industry: Michael Grey, ‘Stevenson says victims of 
piracy must be offered structured support regime’, Lloyd’s List, 25 May 2007.
151  ‘Captain tells of fear and loathing on the high sea’, Lloyd’s List, 13 Oct. 2005.