JERSEY CITY, NJ, Oct. 14, 2002 — With kidnapping for ransom on the rise around the world, Insurance Services Office, Inc. (ISO) has unveiled a new policy insurers can use to offer kidnap, ransom and extortion (KR&E) coverage. ISO has also teamed up with Amsec International, a leading security-management and loss-control company, to provide insurers risk-mitigation and response services for their customers, wherever they are.
Part of ISO's Commercial Crime and Fidelity insurance program, the policy allows insurers to provide worldwide coverage, with certain exceptions, for kidnap, ransom and extortion-related incidents through separate insuring agreements.ISO will provide policy forms, endorsements, manuals and related KR&E materials. Amsec International can provide a round-the-clock, seven-day hotline insureds can call to report kidnap or extortion demands. The company can also provide complete claims-response services, including bilingual negotiators, access to a website of travel-threat alert information, and contingency planning services.
Reliable statistics on the number of incidents are hard to tally, but kidnapping for ransom is a fast-growing crime. Proceeds from kidnappings amount to an estimated $500 million a year, according to a May 2001 report cited in Corporate Insurance and Risk.
"In these uncertain times, with growing threats against American citizens and interests in many parts of the world, ISO's Kidnap, Ransom and Extortion coverage provides insurers a ready-made program they can offer to existing and prospective customers," said Domenick J. Yezzi, Jr., ISO's vice president for specialty commercial insurance.
"The combination of ISO's industry-standard policy forms and related information with Amsec's security-management and consulting capabilities lowers insurers' barriers to enter this niche market and makes providing a comprehensive portfolio of services easier," said D. Mark Lowers, Amsec president.
The ISO KR&E policy, approved by insurance regulators in 50 jurisdictions, provides separate coverages for:
Optional endorsements available to insureds under the ISO policy include coverage for:
ISO is a leading source of information, products and services related to property and liability risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides statistical, actuarial, underwriting and claims information and analyses; consulting and technical services; policy language; information about specific locations; fraud-identification tools; and data processing. In the United States and around the world, ISO serves insurers, reinsurers, agents, brokers, self-insureds, risk managers, insurance regulators and other government agencies.
About Amsec International
Amsec provides a wide range of crime risk mitigation services to business and insurance interests worldwide. Services include pre-employment screening; physical, financial, and e-commerce risk assessments; loss prevention; investigations; loss recovery; protective services; and seminars and training on a number of security issues, all of which may be reviewed at http://www.amsecinternational.com/.