By Sylvia Juuko

AIG Uganda has announced plans to launch the kidnap and ransom insurance product upon approval by regulatory authorities.

Alex Wanjohi, the managing director, explained that the policy would cover extortion payments, legal fees and trauma counselling in the event of kidnap.

“We applied three weeks ago and we are awaiting approval. We have given information to demonstrate that we have products for emerging risks. Some of the sectors that are at high risk include non-governmental organisations, oil and telecommunications,” he said.
Wanjohi said last week the product was already available in Kenya and South Africa.

He said with the discovery of oil in the country, in a region that has some pockets of instability, it was crucial to respond to these unique challenges.

“Today’s business leaders are charged with breaking new markets and territories. This puts us face-to-face with new challenges such as having to work in politically-unstable regions of which are some of the best drivers for kidnap, ransom or extortion,” he said at a breakfast meeting at the Sheraton Kampala Hotel.

AIG works in collaboration with Clayton Consultants Inc., which specialises in the prevention and resolution of a kidnap for ransom, extortion, malicious product tampering and wrongful detention.

Mark Courtney, a consultant with Clayton Consultants, said the kidnap for ransom globally is worth $13b because only 50%of kidnappings are reported.

He said while kidnap cases are on the rise around the world, they can be prevented through security measures.
He noted that Africa is beginning to register a rise in kidnap cases to 17%, up from 5% seven years ago.

AIG Uganda will on November 1 become Chartis Uganda Insurance Company.