The Oil Industry Must Improve Management of Employee Safety as Another Six Expats are Kidnapped in Nigeria
Released on: December 1, 2007, 3:53 am
Press Release Author: Alexandra Lewis
Industry:
Press Release Summary: The oil industry must address employee concerns as the number of foreigners kidnapped in Nigeria is on the increase with another six expatriates abducted yesterday. The total number of people kidnapped has already surpassed 70 this year. Aon, the world's leading insurance broker, is urging the oil and gas industry to step up its duty of care to employees by implementing crisis management plans and other measures to help prevent kidnapping and ensure it is primed to respond to an incident leading to kidnap for ransom.
Press Release Body: The oil industry must address employee concerns as the number of foreigners kidnapped in Nigeria is on the increase with another six expatriates abducted yesterday. The total number of people kidnapped has already surpassed 70 this year. Aon, the world's leading insurance broker, is urging the oil and gas industry to step up its duty of care to employees by implementing crisis management plans and other measures to help prevent kidnapping and ensure it is primed to respond to an incident leading to kidnap for ransom.
During an Aon roadshow in Aberdeen, oil and related businesses named one of their biggest issues as employees not wanting or refusing to work in risky countries. Employees are increasingly aware of the threats to their personal safety through high profile cases, particularly those that have occurred in Nigeria. This is untimely for the Nigerian government, which is increasingly keen to attract the oil industry, having just announced that militant battles around the Niger Delta hotspot are costing them 600,000 barrels a day.
While the number of global kidnappings has dipped slightly, incidents are on the increase in Nigeria due to local militant groups' claims for a larger share of the country's oil wealth for local citizens. The oil industry has also been forced to respond to the risks of working in a number of insecure areas of the world - in the jungles of Colombia, the marginal fields of Venezuela and in Brazil where deep water drilling has called for expertise.
Clive Stoddart, executive director for Aon's crisis management team, said: "There is no reason why an individual should not travel anywhere in the world, as long as risks are well managed. Companies need to take greater responsibility for their employees, especially in line with kidnappers becoming more professional in their approach. Employees need to be educated and given clear guidance as to what to do and how to behave - including the use of common sense."
Firstly, the oil industry needs to reassure its employees by outlining measures to help prevent the kidnap happening in the first place. Advice from Aon's Personal Security Guidelines include:
* never accept a lift from someone at the airport, even if they are carrying a sign with your company logo. These can be easily fabricated and used as an opportunity to kidnap someone from a rich company, able to pay an attractive ransom. Always pre-agree a way of identifying your host; * individuals with perceived wealth are just as much at risk as the wealthy. Hire a common make and colour of car to be inconspicuous; * vary your timings, vehicles and route to work and only travel in daylight.
Throughout the planning process, it's crucial to bring together experts on both physical security and crisis management plans and response - thus ensuring joined up rather than disparate plans with conflicting ideas and opinions.
If oil companies are sending employees to risky areas, they should also consider kidnap & ransom insurance. This reimburses the cost of any kidnap for ransom (up to policy limits) but more importantly gives the company guaranteed access to response consultants whose job is to manage the process for the safe and speedy release of a victim. These costs may include the ransom itself, travel expenses for victims' families or psychiatric care for the employee on release, as well as the fees and expenses of the consultants, without limit.
Clive added: "Premiums are competitive at the moment. The market has been flat for the past two years and there are signs of a softening market so we predict rate reductions in the second quarter of 2007. Insurance is a small price to pay. For example, your premium may be the equivalent of just one day's costs and expenses of the consultants nominated to respond to your incident. Extortion and detention are also included in the list of insured perils together with legal liability, thus protecting firms from law suits from victims' families for having put an employee in danger in the first place.
"Risk management and insurance costs need not directly affect the profitability of a project - these can be included in the cost of the service and passed on to the customer."Corgi insurance services
About Aon Consulting
Aon Consulting is a leading human capital consultancy, helping organisations of every size to attract and keep the employees they need. We advise on all aspects of employment, including health-related insurance and risk; employee compensation and pensions; human resource strategy planning; job design and change management; and staff assessment and legal issues. Aon Consulting is a division of Aon, one of the UK's largest insurance brokers and providers of risk management services and a major force in reinsurance and the UK human capital consulting market. Aon Consulting Limited is authorised and regulated by the Financial Services Authority.
Aon UK is ranked by A.M. Best as the number one global insurance brokerage based on brokerage revenues and voted best insurance intermediary, offering classic car insurance, high value home insurance, entertainment and media insurance and construction site insurance.
Web Site: http://www.commercialservices.aon.co.uk/commercialservices/microsites/construction/