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Kidnap and Ransom Insurance

Kidnapping is a worldwide risk. While corporate and personal security has improved, the use of kidnapping or extortion to gain access to industrial secrets, to make social or political statements, or for simple monetary purposes continues to rise. Since 2001, kidnapping incidents involving a demand for ransom are up over 300%. In fact, according to an article in the London TIMES, the increase in electronic security at home and in businesses actually increases the risk of kidnapping for ransom. The reason? industrial espionage is more easily accomplished through the abduction of family members of individuals who may have the desired information.

Most kidnaps are carried out in order to obtain a ransom, and in most cases a ransom is paid. Rescues are rare, largely because the authorities in most countries recognize that the safety of the viction is paramount. Demands can be huge, with more than 14 countries recording cases of $25 million or more in recent years.

If your company has highly compensated key executives who do a great deal of foreign travel, kidnap and ransom coverage must be considered. Ranson demands can occur anywhere in the world. While most ransom payments are kept confidential, many substantial sums have been paid. Latin America leads the list, but many of the largest settlements have been made in Europe (70% of companies located in Russia, for example, have faced extortion demands in the last five years). [Next]