Kidnap, Ransom, and Extortion Appetite Guide

Coverage

  • Threat, disappearance, and hostage coverage automatically included in the base form of CrisiSolution, our main policy
  • Separate limits provided for ransom, expenses, business interruption, and legal defence
  • Covered medical expenses available for up to 36 months
  • Necessary coverage extensions, via endorsement can include child abduction (with legal liability), evacuation and repatriation, express kidnapping, assault expense, and value of products

Available Limits

Primary and excess limits of up to $50M for corporate entities and high net worth families

Minimum Premium

Typically $1,000 per million

Minimum Retention

None

Program Options

Primary or excess

Targeted Classes / Industries / Geographies

All; AIG is prepared to underwrite all industry types, large or small. This includes:

  • Aviation
  • Oil and gas
  • Energy and mining
  • Construction and engineering
  • Multinationals
  • Pharmaceuticals
  • Maritime and Higher education
  • We will also consider charities, NGOs, and other similar organizations

Target Geographies

All; high-risk regions for kidnap and ransom include parts of Latin America, Africa, the Middle East, and Asia, but extortion often occurs in first world countries and security related incidents can occur anywhere. CrisiSolution is a global umbrella policy without unnecessary destination restrictions.

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Claims Scenarios

Kidnap

Two employees of an international construction company were abducted while returning to their work camp in Nigeria, despite the precaution of a police escort. The kidnappers demanded NGN100 million (USD 623K) for their release.

  • The insured called the AIG crisis centre hotline and NYA deployed personnel immediately to both Nigeria and the client’s headquarters in Paris. 
  • NYA assisted in negotiations and, after 20 days, secured the employees’ release for a payment of $125,000. 
  • AIG reimbursed the insured $195,000, which included the ransom, medical, and rehabilitation costs, and payments to local officials to assist in delivery of the ransom.

Extortion

The head of a wealthy family in Mexico City received several calls demanding the disclosure of business details and a $1 million USD payment or the extortionists threatened to release information about the company and/or kidnap his eight year old daughter.

  • NYA immediately deployed to the insured’s residence
  • They provided a complete risk assessment of the insured’s home and business, together with a protocol for handling future calls. 
  • NYA continued to monitor the matter, but no further calls were received.

Piracy

An international shipping company had one of its ships hijacked by Somali pirates off the coast of Yemen. The pirates demanded US$50 million to release the vessel.

  • NYA deployed personnel immediately to the insured’s corporate offices.
  • After several months of negotiations, the vessel was released for a $9.5 million payment. 
  • The insured’s policy had a $5 million ransom limit, which AIG reimbursed to the insured. 
  • AIG also reimbursed the client an additional $2.75 million for covered expenses.

Evacuation

Following an attempted coup, the U.S. State Department issued a Travel Advisory Warning recommending the evacuation of all non-essential foreign nationals. This impacted our insured, an NGO operating throughout the Middle East.

  • The insured contacted the AIG crisis centre hotline. 
  • AIG assisted in securing travel arrangements for six employees and their families
  • Reimbursed the insured for these evacuation costs.

Why AIG

  • Broad coverage to protect the full spectrum of individuals affected by a wide range of crises. This can include organizational officers or directors, employees, their guests and relatives, as well as volunteers and those handling demanded payments.
  • We have the appetite to underwrite all types of KR&E insurance, spanning all industries and countries. We offer everything from traditional corporate kidnap and ransom insurance to individual and family policies.
  • Primary and excess limits of up to $50M for corporate entities and high net worth families.
  • Broad definition of insured persons that includes officers, directors, employees, their guests and relatives, students,
  • volunteers, and any other person delivering or handling ransom monies.
  • Risk management support that begins long before a crisis occurs, by providing risk assessment and management planning. If a crisis does occur, insureds can rely upon best-in-class providers of crisis communications and negotiations as well as medical and emergency travel assistance services.
  • NYA International: Discover the advanced capabilities of NYA International, AIG’s crisis prevention and response service partner. Together, we provide clients with comprehensive support when they need it most.