CHICAGO, April 9 (Xinhua) -- Shipowners navigating the Gulf of Aden are seeing insurance premiums for kidnap and ransom increase tenfold as piracy escalates, said Chicago-based global insurance broker Aon Risk Services on Thursday, one day after Somali pirates hijacked a U.S. cargo ship.

Photo taken on April 8, 2009 shows some of the suspected Somali pirates in Mombasa, Kenya. Seven suspected Somali pirates were handed over to the Kenyan authorities in the port city of Mombasa by the German navy on Wednesday. (Xinhua Photo) Photo Gallery>>>

    This means shipowners could be paying 30,000 U.S. dollars premium for 3 million dollars of cover for one journey through this piracy hotspot. However, more are opting for cover to protect their employees as well as avoiding lengthy detours that threaten supply chains and increase petrol costs.

    Specialist piracy policies for kidnap and ransom insurance can include cover for consultant and negotiator costs, ransom demands and medical care. These can be bought for individual transits or on an annual basis to bring down the cost.

    "The cost of insurance is simply rising in correlation with the risk of kidnap in piracy hotspots. Despite the presence of naval ships, the spate of piracy attacks over the last six months does not seem to be abating with increased civil unrest and pirates' easy access to rocket launchers and AK47s. As such we've seen enquiries for cover escalate as shipowners seek to protect their employees and businesses," said Ashley Leszczuk, an analyst from Aon's crisis management team.

    Aon indicated that some 70 percent of shipowners are opting for localized policies for the Gulf of Aden, the Gulf of Guinea stretching down to Somalia and the Straits of Malacca while a third of policies placed by Aon cover all locations worldwide.

    On Wednesday, Somali pirates hijacked a U.S.-flagged cargo ship Maersk Alabama with 21 crew members aboard off the eastern coast of Somalia, near the Gulf of Aden. The vessel is the sixth to be seized within a week and the first with Americans aboard.

U.S.-flagged cargo ship escorted to Kenya, captain still held by pirates

    WASHINGTON, April 9 (Xinhua) -- The U.S.-flagged cargo ship Maersk Alabama attacked by pirates off the Somali coast on Wednesday is heading to Kenya under the escort of a U.S. security team on Thursday, but the captain of the ship is still held by the pirates.

    An 18-man armed security team is on board to make sure the vessel and the 20 crew members get there safely, Capt. Joe Murphy, father of the ship's first mate, told CNN. Full story

U.S. navy, FBI respond to pirate attack off Somalia

   WASHINGTON, April 9 (Xinhua) -- A U.S. warship and negotiators from the Federal Bureau of Investigation were called in to help on Thursday, one day after a U.S.-flagged cargo ship was attacked by pirates off the coast of Somalia. Full story

Somali pirates handed over to Kenya police

    MOMBASA, Kenya, April 8 (Xinhua) -- Seven suspected pirates were handed over to the Kenyan authorities by the German marine on Wednesday.

    The suspects were arrested on Sunday, said the German marine press relations officer Christoper Kohlmorgan. But neither the Kenyan nor the German authorities were willing to reveal the exact location where the suspects were arrested. Full story