New kidnap and ransom hot spots are developing all the time inregions around the world.

In parts of Asia, North Africa, Latin America, the Middle Eastand the United States, criminal gangs, political turmoil and otherthreats are creating uncertain and hostile environments.Fast-changing conditions mean that regions can shift unexpectedlyfrom secure to unsafe.

Some of these myriad risks can be seen in parts of LatinAmerica. In 2011, nearly a quarter of all kidnappings worldwidewere carried out in Latin America, with places such as Mexico,Venezuela and Guatemala ranking in the top 10 globally, accordingto data from Control Risks, a global risk consultancy.

The criminal model is also evolving, giving rise to “expresskidnappings” and other criminal variations.

People working, studying or volunteering in Latin America whoare victims of “express kidnappings” will be held for a day or twoand forced to withdraw the maximum amount allowable from theirbank's ATMs. The kidnappers don't ask for a ransom and the victimis often harmed physically and traumatized psychologically, unsureif they'll survive, before being released.

In another tactic, criminal gangs in Mexico demand “protection”money from non-governmental organizations (NGOs), sometimes evenextorting church groups. Throughout Latin America, missionarieshave been kidnapped and held for ransom.

Unpredictable Risks, Essential Protection

Against the backdrop of multiple hot spots and unpredictablerisks, K&R insurance has become essential protection forbusinesses, religious organizations, K-12 schools, colleges anduniversities, the entertainment industry, hospitals, non-profits,NGOs and government contractors.

Awareness of K&R has grown to the point where risk managers,insurance professionals and executives in many industries andsectors–whether they're operating domestically orinternationally–recognize its important role. While protectingtheir people is paramount, they also understand that meeting thisduty of care requires robust protections. If businesses ororganizations fail to meet that standard, employees, volunteers orothers who are harmed carrying out their duties may respond with alawsuit.

A Total Security Approach

Today's K&R insurance coverage has kept pace with risktrends and changing needs. Its total security approach combines theprotection of insurance with the risk management and on-the-groundservices of a crisis management and response firm.

The response firm works hand-in-hand with the insurer and, moreimportantly, the client. In addition to kidnappings for ransom,extortion and illegal detention, coverages often include threats,disappearances and emergency evacuations.

Comprehensive coverage is a necessity as criminal behaviorcontinues to take new forms. Throughout the world's trouble spots,kidnappings remain a serious threat, often fueled by drug cartelsand other criminal enterprises seeking new sources of income asinternal and external power struggles cut into profits.

But not all kidnappings follow this pattern. In the U.S.,hospitals, schools and universities often buy K&R protectionand use the risk and advisory component to create plans that guardagainst infants or children being abducted from their premises.This is just one example of how an insured can proactively workwith the consultant firm that works in partnership with theinsurer.

In fact, many entities that buy K&R coverage see substantialvalue in the risk management component. That's one reason agentsand brokers encourage clients to begin working as early as possiblewith the crisis management and response firm, well in advance oftraveling to a new location.

Leaving Little to Chance

To be effective, preparation needs to be specific and answerquestions such as: How will you travel from the airport to yourwork, volunteer or school site? Are you planning to take anysightseeing excursions? If so, where will you go, who will be incharge of transportation and are you aware of the local conditionsthat could put you in danger?

The risk management/crisis firm can also advise people on how tokeep a low profile. For instance, entertainers in the U.S. oftenuse tour travel as an opportunity to attract attention andpublicity. In places where entertainers could be seen asdeep-pocketed kidnapping or extortion victims, or may have angeredlocal people with their positions on controversial issues,entertainers and their entourages will be counseled to travel asinconspicuously as possible. Tour buses and SUVs may have to bereplaced with common vehicles and tour personnel may have to travelin multiple groups, rather than all together.

Another important aspect of K&R coverage is that it enablespolicyholders to seek advice and intervention from the crisis firm.An employee could be the subject of threats or extortion, forinstance, but may be unsure about how serious the situation is orhow to respond. A crisis management firm can evaluate the threat,determine if it's credible, and gauge whether the company, and notjust the individual, is at risk. The firm's experts can then adviseaccordingly. Since most people have no experience dealing withthese types of situations and they could become dangerous, evenlife-threatening, it's essential that expert advice is easilyaccessible. The role of an outside firm is especially important incases where law enforcement is criminal or corrupt and seekingtheir help can be hazardous.

As domestically based and globalization/international operationsgrow in importance for many businesses and institutions, the goalis not to limit opportunities, but to pursue them safely. Aneffective K&R program that pairs a comprehensive policy with atop-notch crisis firm is indispensable for mitigating risk andmanaging high-stakes situations.