Oil/petrol shipment risk: insurance contract between regulations and environmental policy

Abstract

The term risk has an unsteady meaning in terms of economic and mathematical literatures. I the full economic acceptation of the word, risk refers to the future results’ variability- that can also mean profit. And this acceptation exceeds the frame of insurance, where risk is a potential loss, which would be partially or totally covered by the insurance. According to the two economists Knight (f.), and Arrow (k.), we talk about risk, when the consequences of an action or a phenomenon can be embodied in a number of probabilities. The orientation of Arrow joins that of risk theory which recognizes that human individuals have a natural aversion to risk, and that the need of security concerns goods as much as people. In Arrow’s view, some individuals may have a preference for risk, or even conduce to its realization (insurance moral risk).And some people are more than others, inclined to accept risk and fraud. The risk of maritime terrorism is a new phenomenon and it is interesting to intervene in the calculations of the maritime insurance industry as an externality such as pollution.