The Chubb Corp. (CB) has announced that it will be extending its kidnap/ransom and extortion services 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.
With the extension of this service, customers of personal lines insurance will be able to avail cyber security consultation, background investigation for domestic employees, a 24/7 hotline for security-related questions, and other services from Ackerman Group.
Kidnap, Ransom and Extortion insurance provides numerous benefits and services to the applicant and the insured. It also provides coverage for kidnappings and other events through a combination of financial indemnification and expert crisis management.
This initiative by Chubb is part of its strategy to enable individuals and businesses to safely operate in riskier parts of the world where kidnap and extortion are turning into a lucrative business.
Kidnap & Ransom insurance is not a new product. Lloyd’s of London introduced this way back 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.
Many companies provide this coverage. In Mar 2014, insurer XL Group plc (XL) 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.
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