International Kidnap Insurance for Global Travelers on Medicare

Posted on February 8, 2012 by knrwpaccess

For 50 years, when those into their retirement traveled the world they only had one thing to worry about, purchasing global travel medical insurance because Medicare does not pay claims outside the United States.

For many, international kidnap insurance is just as important. Actually, when you survey seniors about the territorial limitations of Medicare about 50% do not know it does not provide medical coverage outside the United States, which is very dangerous. Medicare also does not provide medical evacuation and repatriation outside the U.S.

In today’s dangerous world, if you are over age 65 and plan on traveling the globe and seeing sights like the Pyramids of Giza or Machu Picchu in Peru, you should consider an annual international kidnap insurance policy.

“Some of the great wonders of the world are in the most dangerous places on earth for kidnap for ransom insurance risk,” says Matthew McKinley founder of McKinley International Risk Management. “If you want to see the Tower Bridge in London or the Eiffel Tower in Paris that is one thing, but sites like Victoria Falls in Africa or the Pyramids of Giza are another.

Kidnap and ransom insurance is almost a necessity for today’s senior citizen spending a few years of retirement traveling the world. Annual international kidnap insurance policies can be purchased by seniors to cover themselves or their families.

McKinley International & KidnapAndRansom.net

Posted on December 5, 2011 by knrwpaccess

Our parent website is found at http://www.mckinleyinternational.com/. Owner Matthew McKinley has almost 20 years of experience working to secure insurance programs for people that work and travel internationally, from the largest Fortune 500 company to individual contractors working in Afghanistan. If you are just an individual, you are NOT too small to contact us as we work with individual expatriate families every day.

“From my very first trip to Mexico City in 1994, I knew safety and security would be the prime concern for expatriates and international business travelers in most countries worldwide. Riding along Rio Consulado back to the airport in a large white Chevy Suburban surrounded by cars ten years older and hundreds of green VW “bug taxis,” I knew I stood out like a sore thumb from a security perspective. Getting to my business destination was even worse, as I was picked up by a poorly dressed young man holding a sign in the airport “M. McKinley.” (It should have said Dumb American.) I was taken to my hotel riding in the front seat of a 1983 Ford Torino! I was a sitting duck and was lucky when we pulled up to the Hotel Presidente, one of only a small handful of hotels in Mexico City safe for foreign travelers. If you have been to Mexico City, you can understand there was NO WAY I could understand where he was driving me. It was like driving through a maze. The sun was my only frame of reference!”

From a psychological standpoint, people have the tendency to look the other way and say “it won’t happen to me,” and unless these products are easy to secure, many people may do nothing or just hope for the best. This is not prudent in today’s dangerous world. It’s too late to wish you had done something after you get a phone call and a family member is missing. Even if you don’t buy a kidnap insurance policy, have you done all the other things you need to do to keep you and your family safe?

Kidnap Insurance for High Net Worth Individuals and Families

Posted on December 2, 2011 by knrwpaccess

Most people that purchase individual kidnap insurance policies, or policies that only cover themselves or their families are typically expatriates living abroad, or frequent international business travelers entering “hotspot” countries with a high risk of kidnap and abduction.

However, there are more than 1,000,000 people living in North America that are considered VHNW (Very High Net Worth) individuals and about 90% of them have no kidnap and ransom insurance on themselves and their families. We feel this is a mistake.

It’s a fallacy to assume kidnap insurance is only needed when one is outside the U.S. and Canada. Although it’s rarely on the news, very high net worth individuals are increasingly the target of kidnap and extortion threats living inside the U.S. and Canada. An annual kidnap and ransom insurance policy for VHNW individuals will work in the home country and also provide coverage as the individual and family travels or vacations outside of North America.

A typical family of 5 VHNW is a target in the U.S. and you would be surprised how many international trips these people take abroad. The breadwinner may be in Mexico City on business, the spouse in Germany on vacation, and the kids on “semester abroad” with their university. The exposures never stop.

A one year kidnap insurance policy is good for an entire year, and costs start at just $1,500 a year.

Short Term Kidnap Insurance Policy

Posted on November 29, 2011 by knrwpaccess

At this time a short term kidnap insurance policy for international business travelers and those taking an international vacation does not exist. We say this because we receive hundreds of requests from people looking for short term kidnap insurance because they are going overseas for a few days or a few weeks a year.

Our most recent request was for 4 days of scuba diving in Borneo. There are tens of thousands of people that are traveling into locations that are “less than safe.” We are working on a short term kidnap and ransom insurance policy but until it is developed, a one year individual or family policy is available for around $1,500 US a year and many should consider purchasing it.

If you are a frequent international business traveler or even a retiree taking extended vacations abroad you should consider a full annual kidnap insurance policy. For example, a retired couple spending 3 weeks in Southeast Africa on Safari and then will have two other vacations during the year, to Mexico and then to China, will be spending $18,000 or more on all three vacations.

Would spending another $1,500 for the protection of kidnap insurance be worth it? For high net worth individuals traveling in these hotspot locations, we would say the answer is most definitely yes.

Kidnap and Ransom Insurance for CEOs

Posted on November 27, 2011 by knrwpaccess

Many global employers that employ expatriates and global travelers have some sort of kidnap ransom and extortion insurance program in place. This can be a stand alone kidnap and ransom insurance policy (preferred) or a program “attached” to another global insurance programs like international commercial liability or foreign workers comp. for example.

No matter what program exists for the general employee population, a dedicated kidnap and ransom insurance program for CEOs should be considered as well as a plan that can also cover a team of top management and executives including the CFO, Chairman of the Board, etc.

The reason for covering them again, blanket policies and kidnap insurance attached to other forms of insurance are mostly inadequate. You want to protect the top people, the executives that are the prime targets, with a program with full service capabilities, like a dedicated K&R insurance package for CEOs and other executives. These are named policies that list, by name, the individuals covered under the policy.

Kidnap Insurance for International Business Travelers

Posted on November 23, 2011 by knrwpaccess

When global employers design a kidnap insurance policy it is mostly done for expatriates relocated to a host country for 3 to 5 years, and perhaps the CEO and top management. However, a large employer may have hundreds of employees taking short international business trips to foreign countries of several days to 2 weeks. How are the security needs of the international business traveler population being taken care of by international Human Resources?

Kidnap insurance for international business travelers should be designed with international business travelers in mind, not an afterthought to the expatriates and the CEO. The employer should sit down with their rep at the travel agent to see exactly where in the world people are traveling and for what duration. Human resources often find out during this exercise there are some new countries where the human resources department was not even aware that employees were traveling on business.

The point here is simple, make sure existing kidnap insurance for business travelers is meeting their needs. A review should be done once every three years. Make sure there are not country exclusions for the areas where the employees are flying on business.

A Crash Course in How to Prevent Abduction

Posted on November 20, 2011 by knrwpaccess

We are often asked as experts in this industry, how to prevent abduction. Of course, this topic requires an entire book, and one that is country by country specific. What we mention here will not be exhaustive and just a tiny sample, and our intention is just to get people thinking. First, use the resources on the internet to find out, for your host country city, what the largest risks are for foreign nationals living in the host city. Educate yourself as much as possible before you expatriate. As one example in 10,000, it is never recommended that a new expatriate in Mexico City that does not know exactly what they are doing, to get into one of those little green cabs, with Mexico City having more of these than New York City has yellow cabs! What are the big issues for your host city, not just your host country? How to prevent adduction means a lot of education BEFORE you go.

Once you are there, find other foreign nationals living in the host city. Ask them FIRST about security planning before you ask about the best American burger restaurant or English speaking bartended. There is no better source of information than the people that have been living there for many years. Many expatriates won’t immediately volunteers critical security information and tips on how to prevent adduction because they themselves, to a degree, with have their head in the sand about the risks posed to foreigners in the host country. It’s a hard topic that MUST be addressed seriously and not put on the back burner.

Finally, always be aware. We will write many blog posts and upcoming articles on how to prevent abduction and we hope you return to our site.

Foreign Risk Management for Small Employers

Posted on November 18, 2011 by knrwpaccess

Small employers may think that foreign risk management is only for Cisco Systems or The Coca Cola Company. This is a way of thinking that can lead to disaster. There are many steps small employers can take in the area of foreign risk management to keep their foreign exposures and liabilities to a minimum. Let’s define a small global employer as a company that may have 1 or 2 expatriates and a few international business travelers each year.

The first thing that should be considered is a foreign voluntary workers compensation program. These plans offered for small global exposures are “kitchen sink” policies and not only can small global employers obtain the workers comp piece, the policies also attach international commercial liability, owned and non-owned auto, products liability, and even kidnap ransom and extortion insurance. In most cases, this “throw in” kidnap and ransom insurance policy provided by these global P&C policies are inferior and have limitations. Small employers with senior executives traveling to security hot spots should have a much more robust and dedicated kidnap and ransom insurance scheme. These insurance plans start at about $3,000 USD per year and are very affordable and flexible.

After securing this policy the small employer should consider the following in this order of importance: a dedicated medical plan for expatriates, global travel medical insurance, medical air evacuation, repatriation, and disability insurance for all permanent expatriates.

Current Approaches to Expatriate Security Before the Assignment

Posted on November 16, 2011 by knrwpaccess

At McKinley International Risk Management, we are often asked about the current trends in expatriate security and we would like to share some essential information. Expatriate security needs to be taken MORE seriously by most employers today. An old kidnapping insurance policy stuffed in a drawer somewhere collecting dust is obviously not enough. Most employers who think they have good policy and procedures in this area of expatriate security have not updated their international security policy in several years. Expatriate security needs to be reviewed every six months at a minimum for the medium and large global employer and once every two years for the small employer.

Expatriate security planning begins before the expatriate and the family leave for the assignment. Expatriates must be warned of the risks in their host country city, being told where not to go and the major risks associated with their host country city, before they board the plane. Planning before the assignment using counseling and the proper delivery of timely information now, can save tremendous headache and tragedy later during the assignment. Also, for any country considered a “hot zone” or major risk, a security professional should visit the host country before the assignment to screen the residence and the work location, looking for expatriate security risks and sealing holes whenever possible.

International Executive Security for Expatriates

Posted on November 14, 2011 by knrwpaccess

Over the next 5 years, the new focus for medium and large global employers must be international executive security. Employee benefit programs for expatriates and international business travelers were overhauled in the 1990s and over the past decade. Employers are doing a much better job in this area. However, the security for international executives and expatriates has not improved in the same proportions. Yes, some companies are doing things very well but we would say this is the exception.

International Executive Security starts with two things: a solid kidnap and ransom insurance program and an emergency security plan on a country by country basis for expatriates and business travelers. Kidnap and ransom insurance must provide, not only an adequate insurance benefit, but it must provide immediate intervention and consulting services in the event of an incident. An emergency security plan for expatriates needs to be country specific and provide a phone number that the expatriate or traveler can call 24 hours a day for immediate assistance and feedback. The perfect example of why an emergency security plan is essential when considering international executive security, are the Mumbai India attacks in 2008. At that time, expatriates and short term international travelers needed to know what to do, where to meet, and if necessary, how to leave the country.

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