Kidnap & Ransom Insurance – A Road Ahead in Managing Terrorism Risks

Raghavendra, * and Nayak, Santhosh and Shenoy, Sandeep S and Shetty, Adithya D (2017) Kidnap & Ransom Insurance – A Road Ahead in Managing Terrorism Risks. International Journal of Economic Research, 14 (15). pp. 545-551. ISSN 09729380

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Abstract

With the rise in Political unrest, Public revolutions and economies being distorted due to various social factors all this has only contributed to rise in the amount of kidnappings across the globe dramatically, especially with more people traveling to less developed and politically unstable economies. Unfortunately, kidnapping is one of the fastest-growing organized criminal activities, over which 80% of such cases go unreported because they are not made public. A particular estimate reported that , two people are kidnapped and held for ransom somewhere in the world every hour and each year, an estimated $1.5 billion is paid in ransom to kidnappers and despite this information merely much is done about it and these numbers are only on the rise. In fact, between 2011 and 2012, kidnappings of foreign nationals increased nearly 100%, as per the most recent publicly available data on this subject, and the average ransom demand in 2012 was approximately $2 million. In the corporate context kidnapping for Extortion and Ransom is endemic in many countries especially among individuals having an important influence on the business functions and in society as well. Protection of such individual is essential for any organization hence the introduction and need for ‘Kidnapping & Ransom Insurance .These kidnap and ransom (K&R) insurance products are envisioned to reduce financial loss for corporates, yet insurers are grappling with numerous challenges especially in areas of Prospecting, Underwriting, Claims adjudication and loss control.

Item Type: Article
Uncontrolled Keywords: Kidnap and ransom, insurance, protection
Subjects: Departments at MU > Commerce
Depositing User: MIM User
Date Deposited: 10 Mar 2018 04:42
Last Modified: 12 Mar 2018 06:18
URI: http://eprints.manipal.edu/id/eprint/150745

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