RISKS RISK ATLAS KIDNAP RISK

Kidnap and ransom danger zones

Kidnap threats are rising around the world and the danger to business travellers and employees is particularly acute
IDNAP FOR ransom is not a new phenomenon. It is, however, becoming more prevalent worldwide as international travel particularly for business presents opportunities for both criminal gangs and politically motivated groups. Kidnaps in North America and parts of Europe, such as Russia, are relatively rare. Most kidnap hotspots run in a belt either side of the Equator and cover problem regions in Africa, Asia and Central and South America.

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on Mexico City and the states bordering the USA. Wealthy nationals, foreign employees of large companies, the middle class and journalists are all targeted.

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4 Venezuela

1 Nigeria

Most kidnaps are carried out by criminal gangs. Politically motivated abductions are increasing and the threat to foreign nationals is high. The southern states are the highest risk and criminals are expanding into neighbouring countries.

Kidnapping is centred on Caracas and victims are mainly businessmen. The western border region is particularly high-risk as the Colombian conflict spills over into Venezuela.

Risk of kidnap for ransom is high for local and foreign nationals in Iraq, especially in the cities of Kirkuk, Mosul and Baghdad. In recent years the number of incidents involving foreign nationals has fallen. Kidnap rates are decreasing but the country remains in the top 10. Kidnaps still occur in northern rural states and urban centres where employees of large multinationals attract significant ransom payments. Express kidnap is often used. The Philippines offers a significant kidnap risk, particularly on the southern islands and, decreasingly, in the capital Manila. Gangs often target Asian businessmen during routine car or taxi journeys.

7 Iraq

5 Afghanistan

2 India

India has had one of the highest kidnap rates for many years and the threat is widespread. The highest levels occur in the cities of Mumbai, Delhi and the neighbouring states of Haryana and Uttar Pradesh. The perpetrators are commonly criminal gangs. There has been a recent spate of child kidnappings.

Most kidnappings are by the Taliban. The risk is country-wide but more severe in the southern and eastern states in areas prone to insurgency. Local and foreign aid workers, journalists and security contractors are targeted, often for political motives but also for financial gain.

8 Colombia

6 Pakistan

9 Philippines

3 Mexico

Mexico has long been a kidnapping hotspot. The number of incidents is rising and drug-trafficking related violence is growing. The activity is focused

Pakistan has been a top 10 nation for kidnapping for several years and the situation is getting worse. Targets are wealthy nationals and expatriates; demands are political as well as financial. Kidnap for ransom is geographically widespread and is perpetrated by a mixture of criminal and Islamic militant groups for financial and political gain.

10 Yemen

Visitors, especially diplomats, have been at risk of kidnapping in Yemen for several years. Tribesmen

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Expert view: Kidnap and ransom insurance

Global problem Kidnapping for ransom continues to grow in many parts of the world. According to rough estimates, as many as 20,000 people are reported kidnapped each year. Many more cases remain unreported because victims families believe officials are corrupt or aligned with the kidnappers. Being abducted is extremely traumatic for the people involved and for a victims employer there may be the cost of ransom payments, business interruption, retraining, medical, litigation and adverse publicity. Kidnap and ransom insurance addresses these exposures and tries, as far as money can, to put the victim back into the position they were in before. The most immediate benefit to a K&R policy is having access to response consultants, who not only help when things go wrong, but work with clients to ensure that ones exposure to kidnapping risk is reduced. Key trends Kidnapping is no longer primarily politically motivated, but rather it is driven by criminal behaviour. As a result of this criminal enterprise, it is estimated that over $500 million in ransoms is paid annually. Many organised criminals are re-discovering this ancient practice. In Mexico, because of the governments clamp down on drug cartels, criminal groups have switched to trafficking human beings, which they are already uniquely set up for. Off the coast of Somalia, as pirates find it more difficult to hijack merchant marine vessels, they have begun raiding luxury resorts and taking individuals for ransom straight off the beach. In Nigeria, criminal gangs are becoming better organised and armed and therefore amounts demanded for ransoms continue to grow. Cover enhancements As a K&R insurer, we continue to focus our underwriting on a clients exposure to high risk of kidnapping jurisdictions and the security and travel measures taken by companies to lessen the dangers of their employees while living and travelling in these countries. We also offer coverage enhancements as needed: cover for political evacuation and repatriation to ones home country (which proved vital during the Arab Spring); ransom payment for express kidnapping, a growing phenomenon in Latin America where individuals are held for multiple daily limit withdrawals at ATM machines; expenses for increased security when threats of kidnapping materialise cover for disappearances or wrongful detention; and ransom payments for extortion, including cyber extortion. Best practices K&R insurance works best in tandem with strong corporate security as well as training and awareness for employees travelling to high risk areas. Gregory Firnau K&R Manager, Chartis Europe

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target foreign nationals in rural areas north and east of the capital. Piracy can also occur in Yemeni waters.

11 Honduras

Foreign and local industrialists as well as businessmen are targeted and kidnappings are frequent. Perpetrators kidnap low or middle income citizens and also use express kidnap intensively.

12 Somalia

Somalias waters are at an extremely high risk of piracy. Somali pirates threaten vessels with powerful weapons, board and direct them to Somali ports. The vessels, cargo and crew are held until a ransom is paid. Journalists and aid workers are at an extremely high risk on land. Source: Special Contingency Risks

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