Key Points:
Kidnap and ransom insurance is one of the most valuable
yet underutilised insurance policies in your company's
insurance portfolio.
Kidnap and ransom (K&R) insurance has been around since the
early 1900s, but has come to prominence because of the increased
piracy in the waters surrounding the Horn of Africa. However, as
the risk of piracy has declined, in part from the increasing
prevalence of armed guards on board vessels passing through
dangerous waters, kidnapping and extortion events have shifted back
onshore. The primary motive for most kidnappings remains financial:
the extortion of a ransom from the victim's family, employer or
government.
As Australian businesses increasingly operate overseas and
conduct business internationally, K&R insurance is taking on
increased importance for Australian businesses.
