With more business people traveling to less developed and unstable regions of the world, the number of kidnappings of foreign nationals has increased dramatically. Between 2011 and 2012 (the most recent data available), abductions of foreign nationals increased nearly 100%. Further, two people are kidnapped for ransom every hour, resulting in $1.5 billion paid annually to kidnappers. An estimated 80% of cases go unreported because they are not made public.
Enter kidnapping and ransom reimbursement (K&R) insurers, whose policies protect the business interests of international companies by reimbursing the ransom paid for a kidnapped employee. Studies have shown that the risk of kidnapping death is reduced by 89% when victims are insured. With 12% annual market growth, to an estimated $8 billion this year, we see the K&R market as an under-penetrated one that is deserving of attention from insurers.