Here is why you should consider kidnapping and extortion insurance

Kidnappings for ransom and extortion are increasing worldwide, and South Africa is no exception to this trend.

According to the South African Police Service’s (Saps) crime statistics for the third quarter of the 2024/2025 financial year, 4 748 reported kidnapping cases occurred between October 2024 and December 2024.

This is an increase of 171 from 4 577 recorded in 2023 for the same period.

Regarding the annual crime statistics, kidnappings increased to 17 061 in 2023/2024, with Gauteng leading as the province with the most cases.

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Kidnapping in SA

Ryno de Kock, Head: Distribution Insure at PSG, said kidnappers usually target various individuals for financial gain, but certain groups like children, wealthy individuals, executives and tourists are particularly at risk.

Businesses can also be targeted as part of extortion or intimidation tactics.

He said kidnappers often target children of business leaders or high-net-worth individuals.

The smaller ransoms are usually not more than R500 000, and family and friends can raise the money to release the victim.

The highest kidnapping ransoms in the country have reached between R72 million and R150 million, primarily in major cities like Johannesburg, Cape Town, Durban and Polokwane.

How the kidnapping insurance work

De Kock said kidnapping and ransom policies provide financial protection as they typically cover the ransom payment and the associated costs of negotiating, investigating, and securing the victim’s release.

“Kidnap and ransom insurance is especially crucial to protect individuals at risk due to their position, status, or net worth.

“It offers more than just financial protection in kidnapping situations; it also ensures that individuals and businesses are prepared and have the right protocols in place to protect family members and key individuals.”

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Cover can be extended to include:

Loss of income: For businesses that are disrupted due to the kidnapping event.

Medical expenses: For any treatment or counselling the victim needs after the incident.

Legal costs: For any legal expenses related to the situation.

Travel expenses: If the victim is held far from home, the insurance may cover travel costs for the family to be reunited with the victim.

Expert negotiation and crisis management

He added that the psychological and emotional impact of a kidnapping on victims and their families can be overwhelming.

“The policy provides access to experienced professionals, including negotiators, crisis managers, and security experts.

“These professionals are trained to handle high-stress situations and secure the release of the kidnapped individual safely and effectively.”

Business owners can protect themselves and their employees through this type of insurance.

“High net worth recreational and business travellers understand that kidnap and ransom cover is the most important start to an international itinerary, as travelling has been identified as a window of opportunity for kidnappings.”

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