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.
Effective K&R risk management consists of four trends: