In today’s interconnected and globalised landscape, executives and high-profile individuals encounter escalating risks of ransom kidnappings. These criminal activities pose severe consequences for both the targeted individuals and the organisations they lead. Particularly in South Africa, geopolitical tensions, economic instability, and the surge in cybercrime have created an urgent need for protection. Kidnap and Ransom insurance stands out as an essential tool to mitigate these risks, providing comprehensive coverage and support in the face of evolving security challenges.
Rising Security Threats
Statistics from the South African Police Service (SAPS) reveal a nearly 200% increase in kidnapping for ransom and extortion over the past decade. However, the actual numbers may be higher due to the secretive nature of ransom negotiations, according to the Global Initiative Against Transnational Organised Crime.
CEOs and executives, particularly those working in regions or industries with elevated security risks, face a notable security concern in the form of kidnappings for ransom. Criminal organisations and opportunistic kidnappers perceive executives as attractive targets due to their prominence and the possibility of substantial ransom payments. The consequences of such kidnappings may include emotional distress, harm to reputation, and significant financial losses for both the executive and their organisation.
Comprehensive security measures are crucial to safeguard executives and effectively mitigate potential risks.
Comprehensive Coverage Benefits:
Ransom insurance has become more crucial than ever, offering comprehensive coverage beyond covering ransom payments. These policies extend support to executives and organisations facing crises by providing the following benefits:
- Financial Losses of Kidnapping,
- legal costs, and expenses related to crisis teams.
- Wrongful Detention
- Personal belongings
- Accidental death and disability
- Political and Natural Catastrophe Evacuation
- Threat and disappearance for up to 120 days
- Medical expenses
- Trauma counselling
- Products extortion
- Workplace Violence
- Virtual kidnapping
- Ransom
- Crisis Hotline
Importantly, RBS provides access to a network of skilled negotiation experts and security professionals, ensuring a holistic response to the myriad challenges posed by security threats.
Best Practices for Policyholders
Enterprises considering Kidnap and ransom insurance must adopt best practices to maximise policy effectiveness. Maintaining confidentiality about coverage is crucial, as public knowledge could inadvertently make executives targets for opportunistic criminals. Regular coverage reviews align with changing risk profiles to ensure policies remain relevant and practical. Integrating ransom insurance into a comprehensive security strategy is essential, ensuring a coordinated approach to risk mitigation.
As security threats continue to evolve and diversify, ransom insurance has emerged as a must-have in the toolkit of businesses operating globally. Its ability to provide financial support, access to expert professionals, and coverage for emerging risks is a strategic investment in the age of heightened security threats. By adopting best practices and embracing the comprehensive protection offered by these policies, enterprises can navigate the complexities of global security with confidence and resilience.
About RBS
Risk Benefit Solutions, better known as RBS, originated as an entrepreneurial-focused services business in 1998 and today is one of the largest fully-fledged black-owned insurance brokers in South Africa and a Level One BBBEE contributor. Celebrating 25 years in business this year, our growth has contributed to offering clients a unique approach to risk management by positioning our skilled resources as an extension of our client’s risk management team. Our company covers various services, including Insurance Broking, Risk Management, Commercial and Corporate Risk Advisors, and Corporate Vehicle Hire Services. With its head office in Cape Town, RBS has offices in Gauteng, the Eastern Cape and globally, represented through its board membership with WING (Worldwide Insurance Network Group).