AIG to provide kidnap insurance
American International Group (AIG) has become the first foreign insurer to receive approval to sell kidnapping insurance on the mainland.
According to David Peng, who runs the Guangzhou operations of AIG's AIU Insurance, the insurer is now allowed to sell kidnapping coverage in the Pearl River Delta cities of Guangzhou and Foshan.
'China has experienced robust economic growth for many years and accumulated a large base of high net-worth individuals,' Mr Peng said. 'This group of individuals may become targets of serious crimes such as kidnapping and extortion.
'We believe there is demand for such a product as consumers are becoming increasingly aware of the need for transferring risk and personal protection.'
The number of recent kidnapping cases has highlighted the fact that many of China's nouveaux riches are living increasingly dangerous lives, especially as the gap between the rich and poor widens and the country's much-vaunted 'social stability' deteriorates.