Why kidnap and ransom insurance is essential today

Why kidnap and ransom insurance is essential today

Kidnapping for ransom and extortion is a rising global threat that affects individuals, families and businesses. According to the South African Police Service (SAPS) annual crime statistics, kidnappings increased by 264% from 2 692 in 2014/15 to 17 061 in 2023/24 1.

Kidnapping can happen anywhere. Kidnappers may target various individuals for financial gain but certain groups like children, wealthy individuals, executives and tourists are particularly at risk. In some cases, businesses are also targeted as part of extortion or intimidation tactics.

Relatively small ransoms of around R500 000 or less have been demanded for a victim’s release where family and friends can raise the money. The highest kidnapping ransoms in South Africa have reached between R72 million and R150 million, primarily in major cities like Johannesburg, Cape Town, Durban and Polokwane.

It is crucial for individuals and businesses to be aware of these kidnapping risks and to take appropriate precautions to protect themselves and their families.

The vital role of kidnap and ransom policies

• Financial protection
  The policy typically covers the ransom payment, which can be significant, as well as the associated costs of negotiating, investigating and securing the release of the victim.
  Kidnap and ransom insurance is especially crucial to protect individuals at risk due to their position, status or net worth. It offers more than just financial protection in kidnapping situations, as it also ensures that the individuals and businesses are prepared and have the right protocols in place to protect family members and key individuals.

• Expert negotiation and crisis management
  The psychological and emotional impact of a kidnapping on victims and their families can be overwhelming. The policy provides access to experienced professionals, including negotiators, crisis managers and security experts. These professionals are trained to handle high-stress situations and secure the release of the kidnapped individual in a safe and an effective manner.

• Protecting yourself and your employees
  High net worth recreational and business travellers understand that kidnap and ransom cover is the most important start to an international itinerary, as travelling has been identified as a window of opportunity for kidnappings.

• Kidnapping from schools
  Children of business leaders or high net worth individuals are often targeted by kidnappers, due to their vulnerability. School abductions are becoming more common, as it is an easy escape option for the kidnappers.

Cover can be extended to include:

• Loss of income: For businesses that are disrupted due to the kidnapping event.
• Medical expenses: For any treatment or counselling needed by the victim after the incident.
• Legal costs: For any legal expenses related to the situation.
• Travel expenses: If the victim is held far from home, the insurance may cover travel costs for the family to be reunited with the victim.

Reputation and brand protection

A kidnapping situation can severely damage the reputation of a business. Kidnap and ransom insurance demonstrates to clients, employees and stakeholders that the company values security and is prepared to handle such extreme situations. Kidnap and ransom cover does not only safeguard the financial stability and reputation of businesses, but also demonstrates a commitment to supporting and caring for the community.

Having kidnap and ransom insurance provides peace of mind for both individuals and businesses. Knowing that you have the resources and expertise to handle a traumatic event can make all the difference during a time of crisis.