Obama orders changes to US hostage policy

By Chad Hemenway on June 24, 2015

While not changing longstanding policy regarding government concessions to hostage takers, President Barack Obama this week said families of hostages can no longer fear criminal prosecution for negotiating with and making ransom payments to foreign kidnappers.

The Presidential Policy Directive follows an order from the Obama administration for the National Counterterrorism Center to study to the nation’s policies. Previously, families attempting to work with kidnappers were pressured by the government and allegedly threatened with prosecution if they tried to pay a ransom.

“The United States will use every appropriate resource to gain the safe return of US nationals who are held hostage,” reads the directive. “But the United States government will make no concessions to individuals or groups holding US nationals hostage. It is United States policy to deny hostage-takers the benefits of ransom, prisoner releases, policy changes, or other acts of concession.”

The new hostage policy continued: “The United States Government will endeavor to work closely with a hostage’s family in a coordinated manner and will proactively share as much information as possible with the family, mindful of the need to protect the safety of the hostage, the integrity of any recovery efforts, any ongoing criminal investigation, and intelligence sources and methods. The United States Government will also provide assistance and support services to help hostages and their families cope with the effects of the hostage-taking during the period of captivity, through the resolution of the hostage event, and throughout any prosecution of the hostage-takers.”

In late April Advisen spoke to Chris Arehart, global product manager for crime insurance at Chubb Group, at the RIMS Annual Convention in New Orleans. He said interest in Kidnap & Ransom could increase following the expected announcement from Obama.

“No family should have to deal with bureaucracy at a time of personal crisis,” he said. The directive allows families—and businesses with workers in harm’s way—to seek K&R insurance solutions in order to get “qualified individuals to handle the case.”

Following the president’s announcement the US Department of Justice released a statement: “In the face of their loved ones being held captive indefinitely by terrorist groups, families have understandably explored every option to secure their loved ones’ safe recovery. In these cases, the department has focused on helping the families, consistent with the government’s no-concessions policy, and will continue to focus on exploring all appropriate options. The department does not intend to add to families’ pain in such cases by suggesting that they could face criminal prosecution.”

Chad Hemenway is Managing Editor of Advisen News. He has more than 15 years of journalist experience at a variety of online, daily, and weekly publications. He has covered P&C insurance news since 2007, and he has experience writing about all P&C lines as well as regulation and litigation. Chad won a Jesse H. Neal Award for Best Single Article in 2014 for his coverage of the insurance implications of traumatic brain injuries and Best News Coverage in 2013 for coverage of Superstorm Sandy. Contact Chad at 212.897.4824 or [email protected].