Kidnap and extortion may sound like the plot of an action-packed blockbuster but one industry expert has warned it’s actually a very real risk to Australian businesses – and not just the big corporates.
“More and more SMEs are travelling far and wide to provide goods and services,” says Anita Lane, owner and director of Solution Underwriting Agency. “Kidnap, extortion and detention are very real risks in many locations.”
Pointing to South and Central America, the Middle East and Africa as particularly high-risk regions, Lane says companies should consider specialist insurance before sending an employee into any of those areas – unfortunately, many still overlook or underestimate the potential risk.
“It tends to be one of those ‘it won’t happen to me’ or ‘that just happens in the movies’ kind of risk,” she tells Insurance Business. “It may not happen in Australia but once an employee leaves Australian shores the exposures are real.”
According to crime statistics and data firm Havocscope, around US$1.5 billion is paid out to kidnappers every year - $50 million of which is made in Mexico alone.
Interestingly, research by anti-kidnapping advocacy Alto al Secuestro also suggests that high net worth executives are no longer the only individuals at risk. Now, middle-class workers and mid-level professionals are at an increased risk as perpetrators seek to expand the number of potential targets.
Brokers, Lane claims, have a key role to play in educating clients who may not realise they’re at risk.
“It’s like any type of risk – brokers need to be better educated on the exposures and how to protect their clients,” she says.
Lane’s comments come after Solution launched a new kidnap and ransom product which provides protection options across a wide range of risks – from negotiator fees and travel costs to psychiatric care and plastic surgery.
