Covering a Dangerous Risk
By: Craig Guillot
Two people are kidnapped and held for ransom somewhere in the world every hour, according to some estimates, and approximately $1.5 billion in ransom is paid to kidnappers every year.
Kidnap and extortion is on the rise across the globe, and demand for KRE (kidnapping, ransom and extortion) coverage is growing. Insurers are offering more comprehensive policies to meet the risk...
Dan Burns, president and CEO of specialty risk underwriter Pro Financial Services in Chicago, said customers aren't just paying to insure the risk, they're also buying a "network of expertise."
While a KRE policy can be a literal lifesaver in terms of securing the freedom of an employee, they are infrequently triggered and used more for peace of mind with employees, he said. Increasing publicity about global instability and kidnappings has more companies looking to these policies to establish a relationship with security experts.
“What you’re buying is access to a very experienced global security network that has experience and familiarity in dealing with situations that most clients have and never will encounter,” Burns said.
“We’re seeing more companies carry these policies out of a sense of duty or care,” Burns of Pro Financial said. “You need to do right by your employees and having this type of coverage in place is pretty important for them.”
Read the original article in its entirety on the Risk & Insurance website here.