Denise Balan
Head of US Kidnap & Ransom
and Workplace Violence
Insurance
Crisis
Management
Kidnap Hotspots of the World
If you go, here’s what you need to
know
One of the most spectacular, mass kidnap-for-ransom incidents occurred a little
more than year ago on January 16, 2013. In the early morning hours in a remote area
of Algeria, 32 heavily-armed terrorists entered the In Amenas gas plant. At the time,
nearly 130 foreign workers were employed at the plant. They came from 30 different
countries and represented numerous operators, contractors and subcontractors
from 50 companies based around the world. No company or country’s workers were
immune to the violence that day. What was so surprising about the incident was the
number of nationalities caught up in the attack and the geographic diversity of the
workforce employed at In Amenas.
Whether one employee or hundreds of employees are deployed overseas, for
short or long term assignments, there are unknown and unseen dangers in sending
employees to foreign lands. Today, the largest proportion of recorded kidnappings
takes place in Asia and the Pacific, particularly in India, Pakistan, Afghanistan and
the Philippines. While Mexico remains the top country for kidnappings, the oil rich
regions of Africa – Nigeria, Kenya, the Sudan, Mali and Libya – present significant
risks as illustrated in the In Amenas example above. Following the Arab Spring and
the civil war in Syria, the Middle East is once again among the riskiest places in the
world.
In Latin America, the most serious kidnap cases seem to be getting more protracted
as hardened kidnappers have taken more care in choosing wealthier targets and
become more patient. According to Terra Firma Risk Management, a security
consultancy firm, “express” kidnapping has been steadily on the rise. Instead of
negotiated ransoms, this quicker version involves fast, targeted grabs, followed by
short periods of detention and smaller ransoms.
Kidnap Hotspots of the World
A unique feature of this coverage is that workplace violence
is covered under XL Catlin’s definition of assault. Personal
Accident limits are 100% of loss limit and there is no sublimitation for loss of limb.
However, according to a recent Forbes magazine article,
“there’s a Catch 22 to K&R coverage.” The employee isn’t
supposed to know about the coverage. If they do, the
coverage may not be valid. The whole point of a kidnapping is
to collect a ransom and knowing that coverage exists could
make the employee even more vulnerable to kidnapping.
KRE Coverage is available as part of a corporate insurance
portfolio or as a stand-alone policy for family protection or
marine piracy protection. XL Catlin has just introduced a
comprehensive, new kidnap, ransom and extortion (KRE) crisis
policy. Covered incidents include not just kidnap-for-ransom,
but extortion, hijack, wrongful detention, threat event,
disappearance, express kidnap, hostage crisis, child abduction
and assault.
When an employee is traveling on business to an area where
kidnap and other forms of crisis risk are common, here are a
few recommendations that will help reduce their exposure:
1. Be aware of your surroundings.
2. Keep a low profile. Do not talk loudly or wear conspicuous
clothes or jewelry. Be careful when speaking on the phone,
especially on a mobile or in a public place.
3. Do not carry large sums of money or all of your credit cards
on you.
4. Make copies of your passport, visas and tickets. Keep them
separate from your passport, wallet, purse or other original
documents.
5. Do not discuss your plans or itinerary in public or with
strangers. Do not advertise your corporate affiliations.
The risks – and rewards – of global expansion are massive
for companies and employees working in the Middle East,
Africa, Asia and the Pacific regions. To protect employees and
company facilities, most prudent multinational companies buy
kidnap, ransom and extortion (KRE) coverage.
What to do if you go
Balancing the risks and the rewards of global
expansion
The real value of XL Catlin’s coverage is the security
consultant that comes with the purchase of the policy.
Amongst the services Terra Firma can provide, is training
the company’s crisis management team on how to react,
reviewing a company’s travel and safety protocols, and
assisting in formulating a crisis response plan. In the event
kidnappers strike, the internal crisis management team would
be trained and in place and prepared to activate the crisis plan.
The policy covers reimbursement for the loss arising from a
covered event and provides crisis management services from
Terra Firma, a best-in-class security/response firm. Terra
Firma offers pre-incident, real time and post-incident services
to XL Catlin clients.
In addition, our clients have access to a 24/7/365 dedicated
Crisis Hotline and a dedicated crisis management
underwriting and claims team.
Contact
Denise Balan
Head of US Kidnap & Ransom
and Workplace Violence
Phone: +1 646-685-8312
[email protected]
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MAKE YOUR WORLD GO
The information contained herein is intended for informational purposes only. Insurance coverage in
any particular case will depend upon the type of policy in effect, the terms, conditions and exclusions
in any such policy, and the facts of each unique situation. No representation is made that any specific
insurance coverage would apply in the circumstances outlined herein. Please refer to the individual
policy forms for specific coverage details.
XL Catlin is the global brand used by XL Group Ltd’s (re) insurance subsidiaries. In the US, the insurance
companies of XL Group Ltd are: Catlin Indemnity Company, Catlin Insurance Company, Inc., Catlin
Specialty Insurance Company, Greenwich Insurance Company, Indian Harbor Insurance Company, XL
Insurance America, Inc., XL Insurance Company of New York, Inc., and XL Specialty Insurance Company.
Not all of the insurers do business in all juridiscictions, nor is coverage available in all jurisdictions.
Information accurate as of September 2016.
XL Catlin, the XL Catlin logo and Make Your World Go are trademarks of XL Group Ltd companies.
KRE_09/2016
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