Tuesday, September 16, 2014

Global Impact: Chubb Corp. Now Offering KRE Coverage to Individuals, Businesses

According to http://www.nasdaq.com, The Chubb Corp. has announced that it will be extending its kidnap/ransom and extortion services (KRE/KRI) to its personal insurance members. 
Until now, this service was offered to its commercial customers through Ackerman Group, a leading provider of a broad range of security services as well as advice on investigative-related issues.
This initiative by Chubb is part of its strategy to enable individuals and businesses to safely operate in riskier parts of the world where kidnapping and extortion have become highly profitable for criminals. 
Kidnap & Ransom Insurance  (KRI) is not a new product. 
Lloyd's of London introduced such coverage in 1932 in response to the then-infamous kidnapping case of a 20-month-old baby of aviator Charles Lindbergh. When it was introduced, wealthy families and companies running business in unsafe overseas regions purchased this form of insurance. Today, the coverage under the policy is much wider.
COMMENT: Many companies provide KRI coverage. In Mar 2014, insurer XL Group PLC announced its new Comprehensive Kidnap, Ransom & Extortion (KRE) Crisis Policy through an agreement with Terra Firma Risk Management LLP. XL Group will provide coverage for hijacking, wrongful detention, child abduction, hostage crisis, disappearance as well as assault.  
Other companies that provide KRI coverage include AIG, Travelers amongst numerous others.

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