Kidnapping & Ransom Insurance: An often overlooked and increasingly relevant need

Posted on May 06, 2015 by Travis Jones

Some parts of the world today are witnessing more kidnappings than ever. These actions are normally targeted at students of international schools, high net worth individuals, and companies and employees working in areas of high risk.

There are more international companies and institutions in China now than ever. As they look to increase their global presence and offerings by expanding abroad, the escalating threat of kidnapping, extortion and illegal detention has emerged as a significant peril. Coupled with existing risks at home, and the vulnerability of cyber networks, it is vital that these institutions protect themselves, their employees, trustees, students and faculty from the physical and emotional harm, financial consequences and negative publicity that can accompany an incident of this nature.

High net worth individuals and their families in China are naturally perceived as prime targets for kidnappings, extortions, and illegal detentions when they travel, especially to politically and economically unstable regions. While many cases go unpublicised, this risk must be addressed.

The natural resources industry is unique in that it must operate where its products are located. Frequently this means going to areas of high risk that are more susceptible to kidnappings, extortions or illegal detentions. If these risks are not properly managed, companies and their employees could face devastating financial, reputational and emotional consequences. In particular this is an issue for many Chinese companies, as they have been active in supporting third world countries, such as many in Africa, where economic and political instability are common.

To tender the rising needs from China, HCC Global (a subsidiary of HCC Insurance Holdings Inc.) has joined with the biggest property insurer in China, PICC, and launched Kidnapping & Ransom Insurance. Coverage ranges from ransom and losses of ransom, legal liability and surrendered personal belongings to threat response expense, disappearance and investigation expenses, as well as crisis response fees in the event of kidnapping, hijacking, detention and extortion.

What’s more, optional coverages are available that can provide benefits for security evacuation and travel, loss of earnings, and much more; all with a dedicated 24 hour a day crisis line and response team.

For more information on Kidnapping and Ransom Insurance through HCC from Pacific Prime, please contact Sylver Zhong, Head of Pacific Prime’s Property and Casualty Department, at sylver.zhong@pacificprime.com. Our helpful agents are standing by to answer all your questions and provide you with a free quote.