UN sanctions hits kidnap cover

Neil Roberts, senior technical executive of the Lloyd’s Market Association has warned that United Nations plans for sanctions on pirates could prevent ransoms being paid, hurting Lloyd’s insurers, the FT reports.

City law firms and security companies that negotiate and make payment under kidnap and ransom polices could also be affected, including AON-owned NYA International.

Sanctions will not explicitly outlaw the payment of ransoms, but will make it impossible in practice because of the uncertainty about where money given to pirates will end up, the FT said.

It quoted one London-based insurer, saying: “We would be very concerned if shipowners were denied a means to free pirated ships. There are no navies prepared to go all guns blazing to rescue people – and it wouldn’t work, either.”