Kidnap and Ransom Insurance in Latin America and Africa
Timetric’s Insight Report: Kidnap & Ransom Insurance in Latin America and Africa analyzes the evolution and expansion of kidnap and ransom insurance in Latin America and Africa.
Kidnapping has become a fast-growing threat for noteworthy and wealthy segments of society, as it is a source of substantial amounts of money with relatively little risk. To mitigate the threat and secure the financial sums involved, kidnapping and ransom insurance have become an effective – if not yet fully efficient – solution.
Despite the various benefits of having kidnap and ransom insurance, the product has failed to make significant penetration in both developed and developing markets. Reasons for this issues related to client prospecting due to limited insight, lack of historical data leading to high premiums, and the absence of standard operating procedures.
The report also analyzes regional developments, and risks associated with kidnap and ransom insurance. Approaches to knowledge and awareness of kidnapping and abduction risk mitigation, and the value add offered by major insurance providers are key to increasing adoption levels of these products.
Timetric’s Insight Report: Kidnap & Ransom Insurance in Latin America and Africa analyzes the growing significance of kidnap and ransom insurance as a risk-mitigation strategy in kidnap and abduction-prone areas. It provides:
An overview of the state of kidnapping, abductions and ransom demands in Latin America and Africa
An overview of kidnap and ransom insurance as a risk-mitigation tool
Regional insight into current developments on kidnap and ransom insurance in Latin America and Africa
The status of kidnap and abduction risk in Latin America and Africa
Analysis of the significance of kidnap and ransom insurance as a risk-mitigation tool
Investigation into the various issues leading to low adoption
Risks covered by these insurance products
Regional analysis of trends and developments in kidnap and ransom insurance
Reasons To Buy
Build an understanding of the market for kidnap and ransom insurance
Develop an insight into market trends and drivers
Gain understanding of regulations applicable to a particular region
Learn about the different competitive strategies in the industry
The rate of kidnapping has increased rapidly worldwide, with an average of two people abducted every hour and around US$1.5 billion spent on ransoms annually.
Between January 2015 and September 2016, according to Constellis, Africa accounted for more than 60% of kidnappings of foreign nationals globally, with Libya and Nigeria being the most significant drivers.
In November 2016, a non-governmental organization (NGO) — National Citizen Observatory — reported an increase in the number of incidents between September and October of 2015, compared to the previous two months. According to figures published by the organization, an average of 22 people a day were kidnapped in the country during September and October.
A lack of historical data from a significantly large data sample makes it difficult for underwriters and actuaries to develop statistical models for determining K&R policy prices.
One of the main challenges in K&R insurance is that employees are often unaware of its existence.
The 1994 kidnapping of Alfredo Harp Helu, a major stakeholder in Banamex, Mexico's largest bank at that time, demonstrates the importance of having a K&R policy and the type of cover it can offer. It was reported that his US$30 million ransom was paid by an insurance policy that Banamex held for top shareholders and executives, and is believed to be one of the highest insurance payouts of all time in this particular category.