The continued targeting of wealthy individuals and companies by organised crime syndicates in South Africa has led to a rise in the country’s kidnap and ransom insurance coverage.

Caxton Local Media reported on the sharp increase in reported kidnappings in the country earlier this week. The upward curve of the past couple of years has led to concern that South Africa is at risk of being regarded as a kidnapping hotspot.

In August, Investec announced at its AGM that it will be spending around R2m a year on the personal security of each of its executive directors. This was shortly after government published the latest crime data, showing that kidnappings in South Africa had more than doubled in the reporting period. Henrietta Baldock, the chairperson of Investec’s remuneration committee, told attendees of the AGM that the measure was introduced due to high-profile business people being targeted.

According to Kayser Baird Insurance Brokers, kidnap and ransom cases have historically been relatively isolated to Latin America, but it is now a global issue. The company’s Tanya Kuypers says South Africa is seeing very high ransom payments.

“In years gone by, kidnap insurance was mostly confined to companies whose greatest concern was for their staff travelling across border into Africa.  But the last few years have seen a huge increase in kidnappings taking place locally.”

A kidnap and ransom insurance policy generally pays for the fees and expenses of the consultant company appointed to manage the case. The consultant will work hand in hand with the insured to ensure that the response to the incident is handled in the best way.

Kuypers adds that kidnapping insurance provides cover for a company or family against one of their own being kidnapped and held for ransom. However, potential clients would need to discuss specifics with their insurance broker.

“As assets and cash are getting far better protected, criminals have had to move their focus to new areas and our ‘nearest and dearest’ have proved to be very lucrative targets. Additionally, in a country with a very strained and ineffective police and justice system, these criminal syndicates operate with relative impunity.”

Kuypers says everything needs to be done to bring kidnappers to justice.

“Kidnapping is a heinous crime that is probably one of the most traumatic events for anyone to go through. If you have any details of perpetrators or have noticed any suspicious activity, please report this to your local SAPS branch.  We need to fight together to halt kidnapping in South Africa.”

In an article on LinkedIn (2021), Cameron Cupido, the CEO of Reinsurance Solutions Intermediary Services, wrote that the dramatic increase in kidnap-for-ransom events has made it evident that this type of cover is no longer a nice-to-have for corporates in Africa, it’s a must-have.

“It is a risk management tool that can help reduce this specific risk while providing financial protection and access to specialist services should an insured event occur.

“Policies cover kidnapping and ransom, extortion, hijacking, wrongful detention, threats without ransom, the disappearance of an insured person, hostage crisis situations and child abduction.”

Also read: Kidnappings in SA: Crime syndicates the main culprits