Piracy trends highlight need for K&R protection
In mid-April, the pirate attack on an American ship off the coast of Somalia focused the world on the perils of maritime shipping. While the crew of the Maersk Alabamaapparently never lost control of the ship, their captain was captured and they were forced to alter their merchant voyage of delivering aid supplies to Kenya. The Times of London reported the brigands' ransom demand at $3 million–but the U.S. military killed three of the attackers and freed the captain before demands could be carried out.
The piracy incident should alert insurance agents and brokers to the larger and growing risks of kidnapping and ransom (K&R) and extortion. These problems aren't exclusive to shipping crews and shipping companies in the Indian Ocean. Even Americans who don't travel the high seas are targets. K&R presents worldwide threats to multinational businesses, relief aid organizations, non-government organizations, educational institutions, and even charities and church missionary groups. What's worse, kidnapping personally threatens the freedom and health of individual employees of these organizations.
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