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The Trading Gamble and the Future of Maritime Insurance Security
In Marine Insurance, the industry culture tends to avoid the high risk red zones of the trading routes in the world. Such as the waters off the coast of Somalia, Strait of Malacca, and the Niger Delta, in the Gulf of Guinea. These areas are high risk zones, for cargo insurance companies, because of the high levels of piracy and war in those areas. In the past, insurance companies have worked hand in hand with security companies to push against piracy and war threats with a gun vs. gun approach. However, in the current maritime environment, officials realize this type of approach is not as effective as they once thought. The change in security thinking has seen authorities move from the gun vs. gun approach to a more social development approach. The goal of this approach is to fight the threat of piracy and war by focusing on improving the government, economy, and environment from behind enemy lines. The insurance companies will also focus on developments that could indicate the future zones that will become the next high risk zones. This “Humanitarian” approach presents a better understanding of future high risk zones and the reasons for them.
GMA 400L - Senior Seminar Research Lab