Iraq Rebuilding Work Under Threat As the Cost of Risk Insurance Leaps; the Dangers Facing Foreign Workers has Led to a Growth in the Demand for Risk Management, Find Valerie Darroch and Julia Fields

Summary

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The wave of kidnappings of overseas workers in Iraq has sent ripples of fear through corporate boardrooms, forcing senior executives to make tough decisions on whether the rapidly rising cost of risk insurance and advice could outweigh the appeal of lucrative reconstruction contracts.

As the number of kidnappings of foreign workers last week climbed to about 40 from 12 countries, insurance experts said that security and insurance now account for half of the overall cost of doing business in Iraq, which is poised to overtake Kashmir as the world's top hot spot for terrorist threats.

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Extract

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Iraq Rebuilding Work Under Threat As the Cost of Risk Insurance Leaps; the Dangers Facing Foreign Workers has Led to a Growth in the Demand for Risk Management, Find Valerie Darroch and Julia Fields

Analyst Kevin Roffer of UK risk management consultancy Control Risks said that despite the recent spate of kidnappings and violence against foreigners in Iraq it is still possible to do business there.

Roffer says: "It is an extremely difficult situation. But if people have taken the right precautions, they can operate, and are operating, there."

He adds: "Security-wise, the...

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