FARC guerrillas in Colombia use kidnapping as source of income

Kidnapping of company employees is becoming a lucrative business for guerrilla and criminal groups around the world.

According to the London-based political think-tank The Foreign Policy Centre (FPC), economic kidnapping is one of the fastest-growing industries in the world.

It generates an estimated $500m each year in ransom payments.

Growing awareness

As a result, large multinational companies are becoming more aware of the need to protect their staff.

Kidnapping trouble spots (1999)

Colombia Mexico Brazil Philippines Venezuela Ecuador Former Soviet Union Nigeria India South Africa Source: FPC

"This is an issue that big companies are becoming increasingly concerned about as more Britons travel overseas for business and pleasure," says Rachel Briggs, manager of the risk and security programme at the FPC.

Specialist insurer Hiscox Group - which claims to be the world's biggest kidnapping and ransom insurer - has been beneficiary of the growing awareness as companies insure themselves against the risks of kidnapping.

Every year for the past five, the company has seen its market grow by 20%.

The exposure risk for business is huge. Business people stand out and they are symbols of wealth.

Rachel Briggs Foreign Policy Unit

British underwriters dealing with kidnapping insurance are said to have most of the FTSE 100 companies on their books.

Vulnerable

Although business people only make up a small proportion of the approximately 10,000 people kidnapped around the world each year, they are seen as a vulnerable group.

"The exposure risk for business is huge," says Ms Briggs. "Business people stand out and they are symbols of wealth."

In many of the world's trouble spots, in regions such as South America, Africa and the former Soviet Union, business people are seen as fair prey for disaffected locals.

"There is often resentment toward foreign plundering of national resources," adds Ms Briggs.

For this reason, oil companies tend to be most vulnerable, but any company sending staff abroad on a short- or long-term basis is exposed.

Another misconception is that kidnappers prefer to target chief executives.

In practice, they find it easier to abduct employees that are most exposed and least protected - like Mr Taylor, an engineer.

Taking responsibility

The increasing responsibility taken by companies for their employees' safety has grown out of strong corporate governance policies, says Alex Gordon Shute of Hiscox Group.

Prevention checklist

Warn staff of the risk Provide training Avoid taking the same routes to work Draw up contingency plans in case of incident Consider insurance policy

"Companies are also recognising that prevention is much the best cure," she adds.

In addition, the advent of globalisation has provided kidnappers with more targets.

As Ms Briggs points out, overseas investment by UK companies alone has increased by 70% in the last few years.

Over the same period, many guerrilla groups have been looking to increase their sources of funding.

"The rise of kidnapping roughly corresponds with the end of the cold war 10 years ago," says Ms Briggs.

"A number of groups that are now heavily involved in the kidnapping business saw their funding from China and the Soviet bloc drying up."

Insurance

The onus of dealing with kidnappers' demands tends to fall on the company and the victim's family.

This has fuelled the need for insurance policies to cover possible ransom pay-outs and other costs incurred.

The kidnapping and ransom insurance sector is unique in that it also packages financial reimbursement with services from security firms.

Hiscox has worked with a business risk company, called Control Risks Group, for more than 20 years.

Control Risks Group helps Hiscox's clients provide training to employees and put contingency plans in place.

Prevention

Practical training prepares employees for the risks they face, says Nicola Hudson of Control Risks Group.

It also minimises the risk of a pay-out.

For example, employees are told not to take the same route to work every day and to respond quickly if they see a dubious road block ahead.

Control Risks also provides on-the-ground advice in the event of a kidnapping.

But contrary to popular belief and Hollywood films, such advisers rarely negotiate directly with the kidnappers.

As companies have become conscious of the damage a kidnapping can do to their reputation, they have worked harder to prevent such occurrences.

But it is still sensitive topic for multinationals. A spokeswoman for BP told BBC News Online, "We just don't say anything about security, I'm afraid."

Division

The paying of ransoms is also highly controversial. In the case of Mr Taylor, the British Embassy in Colombia declined to comment on reports that a ransom had been paid.

Some experts believe pay-outs only encourage kidnappers, while others argue that using money as a bait over a period of time allows negotiators to gather more information about the kidnappers.

For their part, companies are usually keen to recover their employees as soon as possible, even if that means meeting the ransom demands.

The FPC's Ms Briggs believes that confusion over policies to deal with kidnapping should be resolved by greater coordination between companies and governments.

Such partnerships are better placed to combat the threat of kidnapping, she says.

But until differences of opinion are bridged, kidnappers will continue to exploit any opportunities with which they are presented.