This is a situation where kidnappers will force a foreign national into their car, or jump into the car and detain the foreign national for only a short time, robbing what they have in the car or taking them to 1 or 2 ATM machines so they can withdraw as much cash as possible. 

There could be a promise of quick release if the victim is able to get out a certain amount of money and serious threat if the money can’t be produced.  In most of these situations the kidnappers themselves don’t want to hold the victim for any extended duration of time and many are not kidnap and ransom professionals.  Many are local amateurs, and in some cases they can be more dangerous especially if they panic during the express kidnapping.

Even if your kidnap and ransom insurance has an express kidnap feature, of course there is very little chance any company will be able to intervene if the victim is only being held for 6 hours or less, and of course, there is a good chance the victim has not had any contact with anyone, and not allowed to use a cell phone.  There is no ransom call of course. 

The benefit feature in a kidnap and ransom insurance policy may be used to return monies withdrawn from the ATM.  Knowing the expatriate will get all funds back, the victim should be more willing to just drive to the ATM and withdraw as much as possible for the express kidnappers to get back home as quickly as possible.

As we have discussed, planning is critical.  Expatriates should have been taught to think through this situation.  Employers should not tell them about the details of the kidnap and ransom insurance plan, but they should instruct expats that if express kidnappers ask for $500, by all means give it to them and we will reimburse you!  It sound obvious, but there have been many people shot and killed because they caused a problem when asked to remove their $300 watch!  The expatriate should have been over this scenario in their mind, and be prepared to stay calm and pay the express kidnappers.  Without planning, the end result may be tragic.

Expatriate security planning and preparation is similar to what Toyota drivers are being told to do regarding runaway exceleration; prepare in advance.  All it really takes is to tell yourself three times, if my car starts to race shift into neutral, don’t panic, worst comes to worse I can turn the key off.  Panic and lack of preparation have left many dead.

Having someone walk expatriates through the possible situations and actually spending one full day on expatriate security can be the difference between life and death or kidnap and ransom.

Expatriate security and pre-departure preparation means running each possible scenario through… ahead of time.

If you are going to Mexico city here are your expatriate security issues.  Are most employers dealing with these expatriate security concerns in advance?  No.

1. Should I get in a green taxi.. ever?
2. Has there been an international security site assessment both on where I will work and where my family will live?
3. What do I do if someone enters my car?
4. What to do if someone enters the house?
5. Do I have a security emergency number, and who can I reach in an emergency?
6. Is there a political evacuation plan?
7. Who is my security contact back in the home office or locally in Mexico City?

Effective risk management and expatriate security (against violent crime,  political unrest, medical emergencies, kidnap and ransom, hotel fires, extortion, auto accidents etc.) is dependent on effective decision making and making good choices through preparation.

The expatriate policies and procedure manual should have an entire section on expatriate family security, it should not be mentioned just in passing.

However, the kidnap and ransom scenario is the classic “it will never happen to me case.”  No matter how much one reads up on the need for kidnap and ransom insurance for the expatriate family, there is that little voice inside us that says, it will never happen and that is the next guy’s problem.  A movie like Taken is one of the few things that can get the adrenaline pumping and can make us actually consider, “what if that was my child.” 

We find it amazing how many high net worth individuals take their entire family to places like Kuwait, Mexico, Philippines, Egypt and 20 other highly dangerous places without even checking up on kidnap and ransom insurance.  Many won’t even question their own employer about what security plans may be in place in the event of an incident. 

Of course, under a real kidnap and ransom insurance program the company is not at liberty to discuss the particulars and even inform the expatriate about the existence of a kidnap and ransom insurance plan, but the point is very few even ask, at least this is our experience.

It’s too late to make plans once something happens.  A private kidnap and ransom insurance plan may only cost a family $2,000 a year.  If you are a high net worth individual working away from home, this is money well spent.

The results are very surprising because it’s expected that United States citizens would be the most at risk for kidnap and ransom.  The reasons the Chinese are at risk is simple, they have the largest number of people traveling to high risk locations for kidnap and ransom around the world.

Of course, from this fact we can form several conclusions, most notably that the country of the kidnapping victim and how their country treats kidnappers is of no concern to the kidnappers.  The United States made a strong case on how it will treat kidnappers in 2009 when the Navy Seals shot and killed maritime pirates on the Maersk ship Alabama.  We suspect the Chinese special forces would not treat the kidnappers of their citizens with any gentler gloves than the Americans.

For more information on kidnap and ransom insurance for expatriates and travelers please contact McKinley International Risk Management.

For example, the need for kidnap and ransom insurance in Yemen ranks as a 9 out of 10 and the need for Kidnap and Ransom Insurance in Brazil ranks as a 7 out of 10. 

McKinley International is one of the only full service international benefits brokers in the world today encompassing each aspect of international risk management for employers that hire employees to work outside of their home country and for employers that hire local nationals.

1. International Employee Benefits (International medical insurance, dental, life, ltd, etc. for both expatriate employees and local nationals)
2. International Property and Casualty Insurance (global property, global personal liability, vacant home insurance, employers responsibility and international workers comp, products liability, factory coverage, etc.)
3. International Personal Security and Kidnap and Ransom Insurance for expatriate executives.
4. Support services for expatriates such as cross cultural training, international EAP, overseas banking, and medical evacuation and emergency host country legal assistance.

McKinley International Risk Management, along with International Insurance and Investments LLC are sponsors of this informational website on Kidnap and Ransom Insurance.

It’s amazing how many U.S. expatriates moving to the Middle East do so without spending time on the necessary due diligence regarding the safety of themselves and their families heading to Dubai, Jeddah, Jordan, and other areas in the Middle East.  Most large U.S. multinationals will have some sort of kidnap and ransom insurance policy for expatriates moving to the Middle East.  The irony is, the expatriates are not able to obtain any real tangible information about the kidnap and ransom insurance program that is provided to the expatriates by the multinational employer.  If the expatriates are made aware of the details of the kidnap and ransom insurance plan provided to expatriates in the Middle East, in most cases it will void the policy and cancel the kidnap and ransom insurance.

Benefit Managers with expatriates in the Middle East are advised to say the following to their expatriates regarding kidnap and ransom insurance policies for those expatriates heading to the Middle East.

“…Due to security concerns and the advice of our international insurance companies, security vendors and consulting companies we are not allowed to give you the details of the security measures we have taken to protect you and your family while living in the Middle East.  However, we can assure you the steps we have taken to provide for your security are above and beyond the best practices of those in our industry.”

Of course, expatriates heading to the Middle East, and worried about the kidnap and ransom insurance threat, and security in the region in general, should always be provided with an emergency number to call for ANY reason, if they feel they are being threatened in any way.

This 24 hour phone number for international security concerns would go to the international security consultant that would coordinate with the kidnap and ransom insurance company, or mobilize the resources necessary for a political evacuation or to combat extortion.

The FARC activities always puts Colombia in the top 10 worst for International Travel!

We are often asked to list the very worst countries for travel, not necessarily for kidnap and ransom insurance risk, but in general, encompassing all possible factors involving health, safety, and security.

Here is our list for 2009 for the highest risk for international travelers.

Haiti, Afghanistan, Iraq, Chechnya, Somalia, Congo, Yemen,
Nigeria, Philippines, Mexico / Brazil / Colombia (A three way tie.)

We all understand the general risks of traveling to Iraq and Afghanistan which goes beyond the need for kidnap and ransom insurance.  However, other countries on the list require more explanation.

It’s very unusual how bad  Haiti is, and continues to be from a traveler and tourist perspective.  The Dominican Republic, the other side of the island, is becoming a large tourist destination but Haiti can never seem to get it’s act together and ranks worst on our list this year.  From the U.S. Deptartment of State on Haiti:

Travel in Haiti can be dangerous and all visitors are urged to exercise vigilance and caution. In some cities and towns ordinary services such as water, electricity, police protection and government services are either very limited or unavailable. While a U.N. force has provided assistance to police  in Haiti since 2004, their presence does not guarantee absolute security for residents or visitors.

The U.S. mission in Haiti issues security related messages warning U.S. citizens of violent or unstable conditions and has been forced to suspend service to the public or close the Embassy because of security concerns.  These concerns have also prevented Embassy personnel from traveling to or through some areas. Since October 2004 Embassy personnel have been prohibited from entering central Port-au-Prince after dark due to security concerns. The Embassy has also imposed a curfew on its officers. As a result, the ability of Embassy officers to come to the aid of U.S. citizens in distress may be limited.  If situations occur where the Embassy must suspend operations or when officers are unable to travel freely, the Embassy will continue to be available by telephone to offer emergency services to U.S. citizens.

Incidents of violent demonstrations, looting, and transportation disruptions in Les Cayes and Port-au-Prince   resulted in several deaths.  In 2009 the Embassy issued several security related messages advising U.S. citizens to avoid downtown Port-au-Prince near the universities (Avenue Christophe, Rue Capois, and Avenue John Brown) when student demonstrators barricaded streets and threw rocks at passing cars, attracting a large police presence, which responded with tear gas and other forceful measures.  Demonstrations in Haiti often result in violence and require police intervention.  U.S. citizens are advised to avoid all demonstrations.   As a result of such civil unrest, U.S. citizens have been temporarily stranded in isolated locations and could not safely travel until calm was restored.  U.S. citizens are strongly advised to thoroughly consider the risks before traveling to Haiti and to take adequate precautions to ensure their safety if traveling to Haiti.

U.S. citizens in Haiti should avoid all large gatherings, as crowd behavior can be unpredictable. Visitors encountering roadblocks, demonstrations, or large crowds should remain calm and depart the area quickly and avoid confrontation. The Haitian National Police increased their visibility in 2009 and are gradually contributing to improving public security, especially in the metropolitan area of the capital,  However, assistance from Haitian authorities is often unavailable. U.S. citizens must be particularly cautious on days when there are political activities planned in Haiti. U.S. citizens are urged to take common-sense precautions and avoid any event where crowds may congregate.

Kidnap and ransom insurance is essential for anyone traveling to, or living in Haiti as an expatriate.

The Philippines is the land of 7,000 islands.   Some areas of this country are not recommended for traveling like North Cotabato, Mindanao, Zamboanga peninsula, Basilan, Tawi-Tawi and the Sulu archipelago. Apart from robberies and kidnappings there are other threats as well. Local people mix drugs in the drinks of the visitors which can make them unconscious in minutes. Some cases are reported where the tourists not only lose their wealth and also lose their body parts like kidneys.

We should mention Nigeria.  It is the most populous country of Africa. The people living here belong to over 200 different races which is the major cause of shaking economy. This country is also famous for its emails scams.  More than 220 oil workers have been kidnapped in this country and the issue had always been resolved by ransom money. According to reports, these foreign workers were working near the Niger Delta. The areas like Bakassi Peninsula, Bayelsa or the Delta are famous for kidnappings and habitat of armed gangs. There is high risk of getting infected by Malaria and AIDS/HIV. Travelers are also advised to be vaccinated against yellow fever before entering in the country.  Kidnap and ransom insurance is essential for anyone working or living, as a foreigner, in Nigeria especially if involved in the oil trade.

Juarez Mexico Kidnappings affecting America

Kidnap and ransom insurance is not just for fat cat expatriates globe trotting the world.  The market right here in the U.S. is growing and for good reason.  Most Americans are not aware of the extent of kidnappings in Phoenix.

In what is now a dangerous and deadly crime wave, Phoenix, Arizona has become the kidnapping capital of the United States, with more incidents than any other city in the world outside of Mexico and over 370 cases last year alone.

Do most people in the U.S. even consider KnR insurance, now.  Most of the kidnappings are related to the drug trade and the ridiculous problems they have across the boarder in Juarez Mexico, however, ordinary people are not left out of the problem.

Kidnappings and other crimes connected to the Mexican drug Cartels and are spreading across the border, from Texas to California. A  news investigation uncovered horrific cases of chopped-off hands, legs and heads when a victim’s family doesn’t pay up fast enough (basically, the worst parts of the movie Scarface).

To combat the crime, the Phoenix police have created a special unit to handle the kidnappings called the Home Invasion Task Force, which has pulled more than a dozen officers off other assignments. The crimes are occurring across the valley and in all types of neighborhoods.  Kidnap and ransom insurance is actually being purchased by U.S. citizens living in their own neighborhoods.

The ACE International Advantage insurance program is designed to cover a variety of risks for employees working or traveling internationally with their primary insurance offering for expatriates traditionally being international workers compensation insurance.

Kidnap and Ransom insurance is now a standard part of the International Advantage Insurance plan offered by ACE USA.  The Advantage Package now includes $100,000 of automatic Kidnap and Extortion coverage at no additional charge.

The Kidnap and Ransom coverage includes kidnapping, property extortion, bodily injury extortion, product extortion, and information extortion.  A $100,000 kidnap benefit is included with options to increase the benefit up to $5,000,000 USD. 

KNR incidents are handled by Neil Young associates founded in 1990.  Like any good KnR insurance company, the consultant is an independent company.  Neil Young Associates is a premier global crisis consultant that provides information services and crisis response to clients, of which ACE USA is one.

Essentially, throwing in Kidnap and Ransom Insurance at no cost sounds great, but the standard benefit does have the following country exclusions:  

Kidnap and Ransom insurance in Afghanistan, Nepal and Pakistan 
Kidnap and Ransom insurance in Algeria, Sudan and Syria
Kidnap and Ransom insurance in Angola, Sierre Leone and Somalia 
Kidnap and Ransom insurance in Brazil, Saudi Arabia, and Philippines 
Kidnap and Ransom insurance in Chad, Liberia, and Libya 
Kidnap and Ransom insurance in Chechnya, Indonesia and Sri Lanka 
Kidnap and Ransom insurance in Colombia and Zimbabwe 
Kidnap and Ransom insurance in the Congo, Nigeria 
Kidnap and Ransom insurance in Cuba, Russia, and East Timor 
Kidnap and Ransom insurance in Georgia, Venezuala, and Yemen
Kidnap and Ransom insurance in Hatii, Mexico and Peru
Kidnap and Ransom insurance in Iraq, Iran, and North Korea

… all excluded

 All of these countries, which are more expensive and difficult for kidnap and ransom underwriting, can be written by ACE USA at the discretion of their underwriters and for additional premium on a case by case basis with some exceptions like North Korea for example (and other sanctioned countries).

The policy will cover extortion payments, legal fees and trauma counselling in the event of kidnap.

A few of the sectors that are at high risk in Uganda include NGOs (non-governmental organisations and non-profits), oil companies, and telecommunications.  The AIG product was already available in Kenya and South Africa, and AIG U.S. offers companies with expatriates global expatriate kidnap and ransom insurance policies.

With the discovery of oil in the country, in a region that has some pockets of instability, it was crucial to respond to these unique challenges.

Today’s business leaders are charged with breaking new markets and territories. This puts us face-to-face with new challenges such as having to work in politically-unstable regions of which are some of the best drivers for kidnap, ransom or extortion.

AIG works in collaboration with Clayton Consultants Inc., which specialises in the prevention and resolution of a kidnap for ransom, extortion, malicious product tampering and wrongful detention.

Clayton Consultants, a Triple Canopy company, is a crisis management security consultancy offering incident response, security consulting and training services to clients across the globe. Clayton specializes in the prevention and resolution of kidnaps-for-ransom, extortions, malicious product tampering and client risk.

Clayton consultants are experts in the field of crisis resolution with decades of government, military, foreign service and private industry experience. Strategically located around the world, Clayton’s consultants support clients in an advisory capacity based on their security expertise and an intimate knowledge of the local culture. Clayton, collectively has resolved more than 1,500 confirmed kidnap-for-ransom and extortion cases.

Triple Canopy, a security solutions company, acquired Clayton Consultants in 2007.

Mark Courtney, a consultant with Clayton Consultants, said the kidnap for ransom globally is worth $13,000,000,000 and only 50%of kidnappings are reported.  While kidnap cases are on the rise around the world, some can be prevented through security measures.

He noted that Africa is beginning to register a rise in kidnap cases to 17%, up from 5% seven years ago.