Kidnapping for ransom has surged to unprecedented levels in South Africa over the past few years, with official numbers showing that the total number of kidnapping cases in the country reached more than 15 000 in the 2022/2023 financial year.
According to Stats SA, of the total 15 343 kidnapping cases reported during the period, Gauteng had the highest incidences of kidnapping, with 7 818 reported cases followed by KwaZulu-Natal with 3 081 cases in the same period.
The Institute for Security Studies (ISS) reveals that kidnappings reported to the South Africa Police Service (SAPS) have almost quadrupled (260%) over the last decade and crime statistics released by the SAPS for the third quarter of 2023 confirm that kidnappings have increased by 11% year-on-year to 4 577 cases over the period. This works out to about 51 kidnappings a day in South Africa.
“Kidnapping has become a significant problem in South Africa, with the country seeing a significant surge in kidnapping cases over the past decade and with close to 16,000 kidnappings being reported annually,” says Justin Naylor, CEO of specialist insurer iTOO Special Risks.
“It is a very concerning situation, with kidnappings often linked to organised crime such as ransom demands, human trafficking, and drug-related activities. In cases of kidnapping for ransom, it is no longer high-profile and high-value individuals who are being targeted. These days, anyone with access to some funds can become a victim.”
These so-called “express kidnappings” have become a growing concern in South Africa, with a significant rise in cases over the past decade. This form of abduction involves criminals kidnapping victims and forcing them to withdraw money from ATMs or transfer funds via banking apps.
Naylor explains that express kidnapping usually involves the actual or attempted abduction and holding of a person against their will where personal belongings or readily available assets of the captive person are surrendered in exchange for their release.
“Express kidnapping is all about making a quick buck. The syndicate typically does not want to incur the expense or risk of holding a kidnapped person overnight or any longer than they have to. Instead, they want to secure a ransom as quickly as possible before moving on to their next target,” he says.
Naylor notes that the surge in express kidnappings can be linked to the broader increase in violent crime in South Africa, specifically in urban areas like Gauteng. Unlike traditional kidnappings, express kidnappings often target a wider range of victims, not just high-net-worth individuals, making everyone a potential target.
“The alarmingly rapid escalation of this type of crime has prompted insurers to develop specific products to mitigate the risks and costs associated with such incidents. However, while most people are now aware that kidnapping and ransom insurance is available from specialist insurers, not everyone knows what this type of coverage actually entails,” he says.
"Kidnap and ransom coverage does not solely focus on the ransom but is in reality an entire process where family members lead the negotiations with the kidnappers, supported by our consultants. While our consultants do not conduct the negotiations directly, they work closely with the family, providing guidance and advice throughout the process. This includes advising on critical aspects such as proof of life questions to ensure a safe resolution to the situation. Post-incident counseling is also provided to help cope with the trauma of the kidnapping."
Naylor states that iTOO’s kidnap and ransom policy covers clients for more than 20 events related to kidnapping and ransom, ensuring the physical and financial safety of the insured, their business, and their employees.
“With expertise gained from handling more than 1 900 cases across 82 countries, including over 35 cases in South Africa, our specialists are equipped to manage the most intricate situations. We cover the entire value chain of a kidnapping incident – something that off-the-shelf insurance products generally do not do,” he says.
“Clients can rest assured that we have a team of experts who will assist ensure that the situation is resolved as quickly and safely as possible. We work with security consultants who have more than four decades of experience in kidnapping for ransom cases.”
“Kidnap and ransom cover can provide people who feel they and their families are at risk of becoming targets with the peace of mind of knowing that, in the event of a kidnapping, their insurance policy will enable the involvement of reputable specialist consultants who are qualified to deal with such situations,” he says.
However, Naylor advises that even when people have kidnap and ransom cover, they should by no means stop taking precautions but continue to act responsibly and avoid high-risk areas where possible.
PERSONAL FINANCE