Effective K&R risk management consists of four trends:

Agents and brokers must be proactive
The landscape of K&R is complex and constantly evolving. As a result, independent agents and brokers must be vigilant about the trends and risks associated with K&R. This constant awareness will enable agents and brokers to anticipate likely exposures and deliver insurance solutions to address these specific risks. Those of us who specialize in risk management know it is more crucial than ever to provide solutions to these increasing threats. We should focus on reducing the opportunities for kidnapping by enabling and educating those who are at risk. This is an area of policy where there is much potential for success—and where the insurance sector can play a key role a trusted advisor.
K&R exposures are gaining in broader industry sectors
Kidnapping has evolved into an evident danger with the potential to negatively impact any business or entity that deals with counterparts or subsidiaries in foreign countries. Industries traditionally affected by K&R include financial, oil, gas, mining, telecommunications and pharmaceuticals. Today, K&R exposures exist within a much broader range of sectors, such as religious organizations, schools and universities, medical facilities and non-governmental organizations (NGOs). Agents and brokers must be advised that regardless of a client's industry, the threat of K&R still remains.
Kidnap hotspots change from year to year
Statistics indicate that anywhere there is political or social unrest, the risk of kidnap is present. However, it is especially important to be aware of those current regions, or hotspots, with the highest frequency of reported K&R incidents. Agents and brokers should encourage clients to be cognizant of the heightened K&R risk in these countries, and to take special precaution. According to Control Risks' 2012 RiskMap, these countries rank highest among the world's kidnapping hotspots:

Special Reports /

4 Facts About Kidnap and Ransom

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