Even when a sinking looks deliberate, Lloyd’s syndicates have understandable reasons not to challenge a claim, since the odds are stacked against them in court. It’s also bad for business to sue your biggest customers. Shipowners could just as easily get their insurance someplace else, where they might find less combative partners. So rather than fighting fraud, the underwriters normally settle, offering 50 percent of a ship’s value or less, citing “difficulties” in assessing the claim.
