Since the dramatic Jan. 25 rescue of an American teacher and a Danish aid worker kidnapped by Somalis, the issue of kidnap and ransom (K&R) insurance has been at the forefront of media focus. A glance through recent headlines reinforces the maze of possible, insurable K&R exposures. Splashed across front pages are alarming, real-life scenarios in which those involved would be well advised to have had K&R coverage—and those are just the situations that are made public. Regardless of this recent increased visibility in the media, the risk of kidnap for ransom has been, and continues to be, a real and viable threat.

Related: Read the article  "3 Ways to Sell Business Travel Accident Insurance" by Dominick Zenzola.

According to international consulting firm Control Risks Group, kidnapping is one of the fastest-growing and lucrative criminal industries; it is estimated that kidnappers globally accrue more than $500 million each year—and this figure is rising. Fueling this corrupt industry is the convergence of continued social unrest and a weak global economy. Motivated by profit, kidnappers are adapting their tactics in order to capitalize on this market opportunity. As a result, kidnapping is more prevalent than ever: Although data varies, estimates indicate there may have been up to 25,000 kidnappings worldwide in 2011. Even more alarming, these figures of reported kidnappings account for a fraction of the total because less than 20 percent of kidnapping instances are recorded.