The demand for insurance to cover kidnap for ransom has risen significantly, revealed a report from JLT Risk Solutions.
It also found that the cost of kidnap for ransom cover had increased in the past year due to a rise in the number of incidents and claims, with Baghdad being one of the new hot-spots.
JLT specialist kidnap for ransom broker Melanie Simpson said the main purchasers for kidnap for ransom cover were corporations with some individuals, namely wealthy local families, expatriates working in hostile areas and business travellers, also purchasing the cover.
JLT said there had also been a rise in the number of `express kidnaps', where victims were abducted for short periods, taken to an ATM and forced to withdraw money.
Simpson said: "The events of September 11 two years ago focused the minds of many companies on the security of their personnel. The situation in many countries has continued to deteriorate at the same time as the generally heightened worsening of the world terrorism situation."
The "Kidnap for ransom, extortion and detention" report by JLT revealed that Latin America continues to be the global hotbed for kidnapping. Colombia remains at the top of the league table with Mexico, Brazil, Venezuela and Ecuador all flagged up as high-risk countries, the report found.
The economic crisis in Argentina brought a dramatic increase in reported cases, said JLT, while in Peru there was a resurgence of kidnap for ransom.
The report found a significant threat to employees, locals, travellers and tourists in parts of the Asia Pacific region, the former Soviet Union, Africa, the Middle East, Eastern Europe, India and Pakistan.
The number of incidents also increased in Iraq. "In the past, Iraq has not experienced a great proportion of kidnap incidents. However, Paul Bremer, the top US official in Iraq has acknowledged that the crime is becoming a formidable problem," said JLT.
Official statistics reported that there were at least 40 kidnaps in Baghdad during the three months, June to August this year.
