Abstract

"Insurance: A Solution or an Obstacle to Piracy Suppression in Early 20th-Century Hong Kong?"

Ho Nam Dexter Tse, Trinity College Dublin (tseh@tcd.ie)

This paper is part of an ongoing research project that explores the development of insurance coverage for piracy in early 20th-century Hong Kong. By the late 19th century, the emergence of passenger steamships and the weakening and eventual collapse of Chinese state authority led to a revival of piracy around and connected to Hong Kong, with new methods – pirates pretending to be passengers boarded a ship only to hijack it during the voyage, rob it, and take other passengers hostage. At the same time, the development of maritime insurance also reached new milestones, such as the standardisation of the Lloyd’s S.G. policy, the inclusion of the FC&S clause, and the enactment of the Maritime Insurance Act of 1906.
How did this reemergence of piracy and the development of insurance affect shipping? This research proposes that the surge of the new piracy in the 1910s and 1920s, as well as the inability of the Hong Kong, British, and Chinese governments to suppress it, led to a change in the relationship between insurance and shipping. From the definitions of piracy in insurance policies, coverage of piracy in both maritime and life insurances, and the compensations to the crew members killed in pirate incidents, this paper explores whether, in reality, the interests of shipping companies, cargo owners, crew members, as well as passengers, were protected when pirates commit their crimes.
Ultimately, this research examines whether insurance contributed to or obstructed the suppression of piracy in this period. Did insurance safeguard the interests of all relevant parties, or were some groups neglected? Did the coverage against piracy demotivate anti-piracy efforts? Did the British firms, namely the Jardine Matheson & Co. and the John Swire & Sons, that dominated both the shipping and insurance industry in East Asia, shape the landscape of East Asian marine insurance to suit their purpose?