International Construction Project Kidnap&Ransom Risky&Insurance

As the Chinese enterprises EPC projects all over the world and the scale of the projects has enlarged,the uncertainties and risks of the projects are getting more and more complicated.In terms of risk management,Chinese enterprises are in the initial stage of international EPC market,the problem of lack of experience in international EPC risk management still to be faced.The risks of international engineering are varied,including but not limited to disasters and accidents.Those risks will result in the loss of the project itself,property,personnel,etc..Kidnapping,extortion and illegal detention is one of the fastest-growing criminal activities around the world,and in a variety of forms,occurring in underdeveloped countries,developing countries and developed countries.As Chinese enterprises participate in international projects,more and more Chinese are being kidnapped,extorted and illegally detained,and are in distress overseas.As a result,enterprises are becoming aware of the risk of kidnapping and ransom,and the demand for K&R insurance is increasing.The insurance market develops K&R insurance against the risk of kidnapping and extortion.However,K&R insurance is not widely known and enterprise don ’t know much about it,K&R insurance products and rates can’t satisfy the needs of the enterprises.Therefore,we need to further study the demand and the supply relationship between K&R insurance market,further improve and promote the K&R insurance market.This paper analyzes the risks of international projects,especially the risk of kidnapping and ransom;Introduces the definition,causes and characteristics of kidnapping and ransom risk,Analyzes the insurability of the risk and the coverage and market of K&R insurance.At last,by combining the actual cases,this paper analyzes the problem of kidnapping and ransom risk management,provides practical reference for Chinese enterprise.