The lull in Gulf of Aden pirate attacks during monsoon season means kidnap and ransom insurance rates for such risks have fallen by around 30 percent. Aon is urging ship owners looking for kidnap cover to seek quotes now before an improvement in weather lures Somalian pirates back into the waters, as the increase in attacks could see premiums increase significantly.

Clive Stoddart, head of Aon’s kidnap and ransom team, said that the company is expecting a significant rise in piracy attacks when the south-western monsoon season ends. As such, insurance prices are likely to be on the cusp of turning upwards. Ship owners can benefit from fixing the cost of an annual or single transit kidnap and ransom policy now while rates are low. Underwriters are offering reduced premiums, up to 30 percent, for quick and unladen vessels – in other words, those that can more easily escape attack - but he warns that this will almost certainly be short lived.