Passport to Safe Travels:

Practical Advice for Affl uent Travelers

White Paper Provided by HUB International

Charles and Nancy stepped off the airplane and onto the

tarmac at the small airport in Central America—again.

Their favorite vacation getaway, they ended up buying

a cottage there and spending extended long weekends

once every two to three months. They were well-known

as the rich American couple who lived near the beach

about 15 miles from the small air strip. The more often

they visited, the more like home it felt. As a result, they

became less cautious on their last few trips—“we are as

safe here as we are in the United States,” they recently

told their friends. On a recent arrival, just as they were

about to step into the back seat of their car, Charles

noticed it was not their usual car or driver. Luckily, they

had worked with their advisor to put a plan in place in

case anything seemed out of the ordinary.

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Executive Summary

“The world is shrinking” has long been a catch phrase to describe how accessible the world has become; however it should also remind us of the proximity to danger. For anyone whose business and pleasure activities take them across the globe, that means leaving nothing to chance when it comes to ensuring their safety.

The risks facing today’s travelers include kidnapping, hijacking, terrorism, and crime. Advisors to affl uent clients who travel for business or pleasure need to think through everything from managing petty theft and lost passports, to kidnapping, to accessing emergency medical care in a remote location.

This white paper covers the importance of proper planning and understanding the basics of personal safety when in an unfamiliar environment. It includes a checklist of common sense safety tips to reduce the primary risk of being the victim of a crime while traveling in a foreign country.

The prospect of being kidnapped is not as far-fetched as it may have been years ago. Today, it is a serious threat in many parts of the globe. This under-reported crime has become more complicated and dangerous in recent years. Some top security fi rms are retained by insurers to work with policyholders to counsel them prior to a trip and take charge in the event of a kidnapping. A life and death outcome can be predicated on the level of experience the negotiating team has, how well they diagnose the situation, and how quickly they respond.

Finding, obtaining, and paying for medical care in a country where a client has no physician or hospital relationships, no immediate access to personal medical records, and does not speak the local language can create risks. Travelers are advised to have a clear understanding of the available health care and local practices in cities and countries on their itinerary and decide if they need to rely on expert resources to help facilitate access to emergency care as well as consider insurance for overseas medical care or evacuation.

Insurers today offer a plethora of resources, experts and products to reduce the risks facing affl uent individuals when they travel. The right insurance, security advice and partners can mitigate the risks, but only if the individual takes full advantage of the counsel they receive and exercises round-the-clock vigilance.

The fi rst line of defense is

the active, diligent attention

and proper planning to

make certain individuals

understand the basics of

personal safety to decrease

their personal vulnerability.

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“The world is shrinking” has long been a catch phrase to describe how accessible the world has become; however it should also remind us of the proximity to danger. For anyone whose business and pleasure activities take them across the globe frequently, that should mean leaving nothing to chance when it comes to ensuring their safety. Ignorance is not bliss when it comes to foreign travel.

Advisors to affl uent clients who travel frequently for business or pleasure need to think through everything from managing petty theft and lost passports, to kidnapping to obtaining emergency medical care on a remote tropical island or third-world business outpost. Risks include kidnapping, hijacking, terrorism, and crime. Insurers today have a plethora of resources, experts, and products to counsel clients on everything from how to carry one’s passport in the airport to anti-piracy devices for private yachts.

“Most business travelers would say ‘it can’t happen to me’ if you told them they could be a victim of a kidnap and ransom or extortion (KRE) incident,” says Greg Bangs, vice president and product manager for KRE at Chubb. “While it may be true that it is more likely someone will become involved in a traffi c accident overseas than to be in the midst of a terrorist or kidnapping attack, that mentality just doesn’t play smart these days.”

The right insurance, security advice, and on-the-ground support can mitigate the risks, but only if the individual takes full advantage of the counsel they receive and exercises round-

the-clock vigilance.

Common Sense SafetyKidnapping, terrorism, hijacking, and medical emergencies are the exception, not the rule, when it comes to travel safely according to Michael Guidry, president and CEO of the Guidry Group, a Texas-based international consultancy specializing in security risk auditing and management. Security experts agree that petty criminals are opportunistic and they don’t need to look far for victims. Airports, hotels, and upscale restaurants are target-rich environments.

“Many Americans stick out like a sore thumb. U.S. passports are blue and Americans wave them around in the open at airports telegraphing the fact they are Americans,” says Guidry. “Always keep a passport in a secure pocket and bring it out only when necessary. For the same reason, remove luggage tags, which advertise who you are and where you come from.”

According to Guidry, the “basics”, which include passport storage, credit card usage, strategies for overcoming language barriers, dealing with a concierge, and how to stay alert when walking around unfamiliar areas, are more important than preparing for other types of security issues.

“It’s good to think of all the possibilities, but put your time and attention toward the basics. The vast majority of crime that happens when you travel happens when you are not careful with your passport, wallet, and personal information,” Guidry warns.

Terrorism Acts of terrorism are more visible and therefore may seem like a greater threat to travelers than ever before. From September 11, 2001 to the attacks in Mumbai, India in 2008, terrorists target ‘regular’ people to focus attention on their political issues. “Terrorism has been on everyone’s mind lately,” says Guidry. “However, it should not be at the top of your safety checklist. Depending on where you are going, knowing where there are problems and making sure that you keep someone stateside abreast of where you are planning to travel is all the preparation you really need for this kind of security issue.”

Kidnapping The prospect of being kidnapped for ransom is not as far-fetched as it may have been years ago. Today, it is a serious threat in many parts of the globe. The top kidnapping hot spots currently include Mexico, Pakistan, Venezuela, Nigeria, India, Afghanistan, Colombia, Somalia, Brazil, and the Philippines. Latin American countries continue to dominate the kidnap rankings. Haiti and Iraq are absent from the top ten rankings after years of high levels of incidents.1

While many world governments may underreport kidnappings because they don’t want to discourage travel to their respective countries, experts estimate that there are as many as 15,000 annually—even though they acknowledge precise numbers are hard to come by because only a fraction of incidents are reported.2

Travel Dangers for High Net Worth Individuals

“We constantly have to help clients overcome an attractive and dangerous notion -- calamity always happens to someone else.” -- Greg Bangs

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Individuals who have had loved ones kidnapped may not always report incidents to authorities, sometimes from fear of reprisal from criminals and sometimes because local authorities may be involved in the crimes themselves.

Here, too, politics can play a role. “Kidnappers may not be as interested in money as they are in making a political statement. So now, someone traveling internationally on business or for pleasure, must be cognizant of the political situations on top of the purely criminal situation,” said Louis Labrano, SVP, Crisis Management, Liberty International Underwriters.

According to Christopher Voss, managing director of Insite Security, and former lead international kidnapping negotiator for the Federal Bureau of Investigation (FBI), kidnapping has become more complicated in the last few years “Before 2003, negotiators used tactics established for kidnappings in Colombia, in which kidnappers would hold a victim until the ransom was paid. Today, the rules have changed and kidnappers in other parts of the world will kill more quickly. The money can be irrelevant. It is not enough that the security fi rm conducting the operation has institutional experience in kidnap negotiations. The operatives on the ground need to have broad experience across many countries and you need an experienced negotiator who knows how to diagnose a situation and is focused on your interests.”

Kidnapping characteristics vary from country to country and can change depending on the nationality of the travelers, cultural and religious differences and the changing economic climate. In Mexico, some kidnappers will abduct for only a few hundred dollars.3 “Kidnapping in Mexico is largely a criminal enterprise, with eight to 10 kidnapping gangs operating in Mexico City alone,” says Chubb’s Bangs. “Our concern is that all of Mexico, from a kidnapping perspective, has become so dangerous and so out of control that we’re warning people about Cancun and other traditional tourist spots.”

The top security fi rms, including Texas-based Guidry Group and United Kingdom-based G4S (which includes Armor

Group) and others, are retained by insurers to work with policyholders to minimize their exposure and to take charge in the event of a kidnapping. In addition to counsel prior to a trip, they can provide up-to-the minute reports on the political and criminal climate in a particular country. These foreign situation advisories are invaluable in considering where special precautions are needed.

Says Liberty’s Labrano, “Before we issue a policy, I need to know current and prior destinations, including frequency, as well as the industry they work in. I also require a copy of the plan in case of kidnapping, and whether or not your company has experienced a kidnapping. The fact is successful kidnappings have a greater risk of repeating. And we are going to insist that we give you a security briefi ng before you go.“

Having a contingency plan—including the order in which parties are contacted, protocols, and procedures—is crucial. When an individual who is covered under a kidnap, ransom and extortion (KRE) policy is kidnapped, the insurer typically lets the security fi rm assigned under the policy take the lead in directing negotiations, paying ransom, and ensuring that the incident concludes with a safe release.

If a kidnapping takes place, a life and death outcome can be predicated on the level of experience the negotiating team has and how quickly they respond. Speed of response can make the difference between success and failure.

Piracy and Hijacking Closely related to kidnapping, piracy and hijackings, while not common, are threats that travelers need to be aware of and prepare for. “Like terrorism, the chances of these types of security risks are much, much lower than having your passport or credit cards stolen while you travel abroad,” Guidry reminds.

There has been a lot of coverage of increased piracy in the news this year, but tankers and cargo ships aren’t the only targets. Expensive yachts offer the potential for little resistance and rich payoffs to would-be hijackers.

For travelers planning cruises—either on a commercial craft or on their own—it is imperative they know the dangers their route poses, and work with an expert to plan and prepare based on the potential dangers. And, for those knowingly going into unsafe territory, there are products on the market to help deter pirates.

Mega-TALI is a long-range, tunable laser with a 10-20 mile range, which will, in an eye-safe manner, disable the vision of would-be attackers and disallow them from being effective in

Experts also stress that the more

visible one is, the greater the

vulnerability. Kidnappers profi le their

targets ahead of time, so they advise

travelers to be less conspicuous and

less easily identifi able as wealthy.

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their attack. A stand-off from that distance puts the advantage clearly in the court of the defending crew.

“Having good local sources of information, following common sense, and staying current with threats is the best defense,” says Pete Bitar, president and CEO of XADS, a developer of non-lethal laser weapons.

Medical RisksBeing on the receiving end of a crime is only one way to be victimized when traveling outside the United States. What happens when one is injured and in need of emergency surgery, or when a pre-existing condition fl ares up, requiring immediate medical attention? Beyond swine fl u, avian fl u, and malaria, it makes good practical sense to have options in case there is a medical emergency.

Finding, obtaining, and paying for medical care in a country where a traveler has no physician or hospital relationships, no immediate access to personal medical records, and does not speak the local language, can create many risks.

“When you are at home, you have good medical infrastructure, access to your doctors, pharmacy, and big medical centers. All of that goes away when you are overseas. You may not have access to emergency services or quick access to your medical records,” says Dan Carlin, MD, president of World Clinic, a global medical practice that enables around-the-clock access to a personal doctor anywhere in the world.

“For example, what is the practice of medical care in the countries to which you are traveling?” Dr. Carlin asks. “If a treatment does not work, do you have more than one back-up plan?”

According to Dr. Carlin, other medical issues that are overlooked when traveling internationally include the language barrier (medicines are known by different names in different countries) and methods of payment (in many countries, health care is a mix of public and private enterprise, and hospitals

may withhold care until payment is assured.) Doing research and being prepared could save one’s life.

Destination medical planning is one way to ensure that medical support is available in the event of an emergency. WorldClinic offers “Away from Home”, a comprehensive service that includes access to personal medical records, a Prescription Medical Kit, and a proprietary database of physicians and hospitals around the world. It also includes evacuation and emergency hospitalization insurance in addition to other customized services.

The Role of Insurance in Travel SecurityInsurers have the opportunity to help protect individuals before they travel by counseling them on the basics, such as where to store their passport and how to remain anonymous. They also have resources to educate them about the local threats, help them take proper precautions and recommend appropriate insurance coverage.

Kidnap, Ransom & Extortion (KRE) Insurance - Depending on the type of policy, KRE may cover many expenses connected with a kidnapping, including the ransom or extortion monies, death or dismemberment benefi ts, loss of payment, judgment, settlement and defense costs, expenses of a hostage release/security consulting team, and medical or psychiatric care of the victim, and a 24-hour emergency response help line. KRE coverage is primarily offered through ACE, Chartis, Chubb, Fireman’s Fund, Hiscox (United Kingdom specialty insurer) and Liberty.

Premiums and limits can vary according to the countries traveled, type of employment, and the duration and frequency of travel. The World Bank has called for the ban on KRE policies, or to disallow the company tax write off, arguing that the policies encourage kidnappers. To help offset this risk, insurers require that policyholders not disclose that they have such coverage.

Medical travel coverage can include a wide array of services including emergency medical transportation (evacuation, often from any country worldwide), emergency medical and dental coverage, trip cancellation and/or trip interruption, travel accident coverage, and concierge services.

Travel Accident insurance has evolved beyond simple policies designed to pay for death or injury. The newer travel insurance policies include reimbursement for economic loss resulting from trip cancellation, delay or interruption, along with concierge and emergency assistance services designed to meet the needs of today’s demanding travelers.

When traveling, do research so that

you have a clear understanding of

the available medical care and local

practices in cities and countries on

the itinerary.

-- Dr. Carlin, World Clinic

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Chubb Chartis Mondial SOS International

Policy TypeIndividual/FamilyGroup Type Policies

YesNo

NoYes

YesYes

NoYes

Insurance CoverageAD&DMedical Expense +Emergency Medical TransportTravel Delay ExpenseTrip Cancellation/Interruption Baggage/Personal Property LossBaggage Delay ExpenseRental Car Coverage +

YesYesYesYes

Delay OnlyNoYesNo

YesYesYesYesYesYesYesYes

YesYesYesYesYesYesYesYes

No*Limited*Limited*Limited*Limited

NoNoNo

Travel Assistance Services24 hour Global Assistance Call Center Yes Yes Yes Yes

Assistance Services CoveredPrescription ReplacementLegalTravel DocumentsMedical ReferralsTranslation & ConsularConcierge ServicesEmergency Message TransmissionOther listed Assistance

YesYesYesYesYesYesYesYes

YesYesYesYesYesYesYesYes

YesYesYesYesYesYesYesYes

YesYesYesYesYesYesYesYes

AD&D Coverage ExclusionsWarMilitary ServiceMental ConditionsNatural CatastropheHazardous ActivitiesDisease PandemicsPregnancy or Delivery ComplicationsSuicide or Attempt

AD&D Coverage EnhancementsFelonious AssaultDisappearance as DeathExposure After Coverage AccidentInfection After AccidentAccidental Bacteria Ingestion

YesYesYesYesYes

YesYesYesYesYes

NoYesYesYesYes

NoNoNoNoNo

AD&D Payment Structures100% of limits for death100% loss of two limbs or sight & one limb50% of limit for loss of single limb or sight

YesYesYes

YesYesYes

YesYesYes

NoNoNo

Covered Trip Types ±BusinessPleasureMinimum Distance ++Minimum Duration ++Maximum Distance ++Maximum Duration ++

YesYesYesYesNoYes

YesYesYesYesNoYes

YesYesYesYesNoYes

YesYesYesYesNoYes

Covered PersonsInsuredSpouseImmediate Family Members

YesYesYes

Yes Yes ¥Yes ¥

Yes Yes ¥Yes ¥

Yes §Yes §Yes §

Trips Covered (Yes or No)Medical TreatmentCommuting to and from Work

NoNo

NoYes

NoNo

YesYes

* Limitations are to services only – No insurance+ Excess Other Insurance± Some Limit Commuting or Trips for Health Treatment≠ Usually 100 Miles from Home or More and Over 1 Day to Trigger Coverage§ If enrolled++ Usually minimum 24 hours and 100 miles from home – usually maximum duration of 60 or 90 days¥ If listed and declared liability limits which are policy aggregates in some cases

Note:Some exclusions under insurance features are stated because other policies are typically owned and provide the coverage excluded here.

Catastrophe Exclusions are usually uninsurable situations not reasonably foresee-able or extreme loss potentials or “Acts of God.”

Costs and unusual services arising out of repatriation of remains after death usually are covered by all forms but SOS will only help make arrangements.

Travel Accident Insurance & Assistance Services Comparison

NotCovered

NotCovered

NotCovered

NotCovered

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SaudiArabia

Sudan

Algeria

Mali

Nigeria

IranIraq

Central African

Republic

Congo

Kenya

Somali

a

Afghanistan

Pakistan

Nepal

SriLanka

SyriaIsrael Lebanon

Georgia

Columbia

Philippines

Uzbekistan

Haiti YemenEritrea

Burundi

Chad

Cote d’Ivoire(Ivory Coast)

The comparison of select travel insurance policies on page 7 highlights the increasing complexity of these plans. Eligibility requirements vary by plan, with some available on an individual or group basis. Some plans, such as SOS International, provide worldwide travel assistance with no insurance coverage.

Other Valuable Resources U.S. State Department. Provides travel warnings and information. Register for automated email updates. www.travel.state.gov

Department of Foreign Affairs and International Trade Canada. Travel reports and warnings. www.voyage.gc.ca/index-eng.asp

U.S. Department of Transportation. Provides tips on how to prepare and pack safely for air travel www.safetravel.dot.gov

Centers for Disease Control. Provides information about diseases, vaccines, and offers tips on how to stay healthy when traveling. www.cdc.gov

Global Safe Haven Network. Promotes safe travel and offers emergency support to young travelers www.globalsafehaven.org

Current Travel WarningsUsing U.S. State Department data, the map below highlights countries that have met conditions to merit a Travel Warning during 2009. These are issued to describe long-term, protracted conditions that make a country dangerous or unstable. Travel Warnings are also issued when the U.S. Government’s ability to assist American citizens is constrained due to the closure of an embassy or consulate or because of a drawdown of its staff.

This list is regularly updated and should be checked online at www.travel.state.gov. before planning foreign travel.

HUB International offers the following tips for individuals who are traveling internationally:

Learn as much as you can about the country you are visiting before you leave. You should be aware of the political and cultural climate, health/safety risks, active criminal and terrorist groups, and their propensity for kidnap and extortion. There are a number of travel security resources available, some of which provide ongoing travel alerts.

Depending on your destination and your medical condition, you may want to plan for how you will cover the substantial expenses associated with hospitalization and/or medical evacuation. There are a number of travel insurance and emergency evacuation plans that provide cost effective coverage.

Carry your medications in the original containers with copies of the original prescriptions.

Remove all personal information from luggage tags. Use a small, discreet tag that includes your employer name and business address. If your luggage is lost, you can reclaim it with a business card and photo identifi cation.

Do not honor requests to transport letters or packages from people you don’t know, no matter how innocent they appear.

Keep your cash and high value items in the hotel safe.

Leave expensive jewelry at home. The majority of insurance claims placed by individuals while traveling are related to jewelry losses. In many cases, these losses resulted from individuals accidentally leaving their valuables behind.

Book a hotel room between the third and sixth fl oors. A room below the third fl oor can pose a potential security concern. A room on the seventh fl oor or higher makes fi re rescue and evacuation more diffi cult.

Do not discuss your travel plans with hotel staff members or reveal your personal information to casual acquaintances.

When you leave your hotel for the day, secure your luggage with plastic luggage ties. Inexpensive and easy to use, these ties can keep your personal items safe from anyone who comes into your room.

Never leave your laptop unattended. In light of the increasing risk of identity theft, you should travel only with the data that you absolutely need. If you are traveling for business, have your employer install a highly encrypted program on your laptop to reduce the risk of hacking.

Exercise caution in using ATMs. Avoid alerting bystanders that you may be carrying a large sum of cash. ATM transactions should only be done during the day, and only inside a fi nancial institution. Avoid using ATMs that are located on the street.

HUB International Safe Travel Checklist

Additional Safety Tips for High Net Worth TravelersInternational travel presents unique security concerns for high net worth individuals and corporate executives. Many choose to seek the guidance of a personal security advisor who will help them plan their trip and be available in case of an emergency. Risk Control Strategies (RCS), a fi rm that specializes in threat management, investigations and security solutions for corporations and the high net worth community recommends the following tips:

Know who has access to your travel itinerary. Ask if the employees at your travel agency have been screened by their employer. Background checks should be conducted on anyone who has access to your personal information.

Conduct background checks on staff members traveling with you. If you hire a professional security fi rm, ask them to conduct background investigations on your nannies, housekeepers, chefs, chauffeurs, pilots, yacht captains and fi rst offi cers.

Secure a personal driver on the ground. Depending on the travel destination, you may opt to hire a personal driver who has been screened for safety. Some security consultants employ drivers worldwide who have been carefully investigated. Avoid cabs and/or rental cars. Having someone do the driving for you enables you to enjoy your travels and arrive safely.

Secure a Kidnap & Ransom policy before you go. This applies to all international locations, not just the countries or regions that have been deemed “hot spots.” Kidnap & Ransom insurance can help protect individuals in the event of an actual kidnapping and assist in the safe release of the victim. If children are traveling with you, they each need their own individual policies. Older children who are studying abroad should also have their own insurance policy.

Consider destination medical planning – If you have a serious or complex health problem, consider hiring an expert who can arrange for customized medical services and resources to be in place wherever you go.

For more information, contact your HUB International Personal Insurance advisor.

www.hubinternational.com

HUB International Safe Travels Checklist

This information is provided for general information purposes only. It does not constitute professional advice and does not create a broker-client relationship. Please consult a HUB advisor about your specifi c needs before taking any action.

11

Sources

1. “Annual Kidnap Review”, Special Contingency Risks Limited, London, England, 2008.

2. “The Eighth United Nations Survey on Crime Trends and the Operations of Criminal Justice Systems,” United Nations Offi ce on Drugs and Crime, Centre for International Crime Prevention, 2002.

3. “A Mexican Kidnapping: Police Apathy, Few Answers,” Alexandra Olson, Associated Press, Mexico City, February 21, 2009.

ACEJean McDermott-Lucey K&R212-703,7190jean.mcdermott-lucey@acegroup.com

Scott Lambert - International Advantage215-640-4586scott.lambert@acegroup.com

Karen Sheekey - Accident & Health215-640-4145karen.sheekey@acegroup.com

Bruce Wixson - Yachts609-927-0878bruce.wixson@acegroup.com

ChartisJeremy Wyatt, Vice President, Marketing - Accident & Health, 212.770.0808 jeremy.wyatt@aig.comwww.chartisinsurance.com

CHUBBGreg Bangs, Vice President and Product Manager - Kidnap, Ransom and Extortion(908)-903-2000

Fireman’s FundDonald E. Soss, chief underwriting offi cer - Personal Lines 415-899-2000

Insite Security, Inc.Christopher Voss, Managing Director212-362-5700www.insitesecurity.com

The Guidry GroupMichael Guidry, president and CEOUSA 936-582-5810www.guidry.com

Liberty International Underwriters Louis Labrano, senior vice president - Crisis Management, 212-208-9543, louis.lubrano@libertyiu.com

MondialMark Cipolletti, vice president, Corporate Communications, 804- 673-1591mcipolletti@worldaccess.com

Private Health ManagementLeslie D. Michelson, Chairman & CEO310.248.4000info@privatehealthmgmt.com

Risk Control StrategiesPaul Viollis, CEO212-267-6992www.riskcontrolstrategies.com

World ClinicDr. Daniel Carlin, MD800-636-9186www.worldclinic.com

XADSPete Bitar, president and CEO765-644-7324 Pete@XtremeADS.com.

Special thanks to Jim Boyd for research assistance.

HUB International thanks the following resources for their contribution to this white paper.

For more information about travel risks and insurance solutions, contact James Kane, president, HUB International

Personal Insurance at james.kane@hubinternational.com, or your HUB International Personal Insurance advisor.

HUB International LimitedHeadquartered in Chicago, HUB International is a leading North American insurance brokerage that provides a broad array of property and casualty, reinsurance, life and health, employee benefi ts, investment and risk management products and services through over 200 offi ces across the United States and Canada.

HUB Personal Insurance, Private Client AdvisorsThis dedicated practice within HUB International offers one of the largest and most sophisticated personal insurance practices in North America. Licensed on all 50 states and the territories and provinces of Canada, HUB International Personal Insurance has access to the products and services of hundreds of insurance carriers and intermediaries. For more information, contact personalinsurance@hubinternational.com

This information is provided for general information purposes only. It does not constitute professional advice and does not create a broker-client relationship. Please consult a HUB advisor about your specifi c needs before taking any action.

www.hubinternational.com