insurance

US Navy ‘will begin escorting’ oil tankers through the Strait of Hormuz, a strategic waterway, if necessary, US President Trump says.

President Donald Trump has announced that the United States government will offer insurance to ships in the Gulf after Iran largely succeeded in shutting down the Strait of Hormuz, sending oil prices soaring.

The US president added that the US military will accompany ships through Hormuz if necessary.

“Effective IMMEDIATELY, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially Energy, traveling through the Gulf,” Trump wrote in a social media post on Tuesday.

DFC is the US government’s development finance agency. Its mission is to “advance US foreign policy and strengthen national security by mobilising private capital” across the world.

Trump added that the discounted risk insurance will be available for all shipping lanes.

“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible,” he wrote.

“No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD.”

The Strait of Hormuz is a vital trade artery that connects the Gulf to the Indian Ocean. Around 20 percent of the world’s oil flows through it.

The price of oil has shot up by more than 15 percent since the US and Israel launched strikes on Tehran that started a war with Iran three days ago.

Costs are expected to rise even higher as oil supplies decrease as a result of Iran’s closure of the strait, as well as attacks on energy instalments in the Gulf.

Some insurance companies were reported to have cut back coverage amid the Iranian attacks.

Although the US is largely self-sufficient with its oil production, an uptick in prices globally could hike the cost for Americans at the gas or petrol pump, and could boost inflation.

The average price of one gallon of gas (3.8 liter) in the US jumped more than 11 cents overnight to $3.11 on Tuesday, according to the AAA Gas Prices website.

Earlier on Tuesday, Trump stressed that the attack on Iran “had to happen” despite its human cost and the strain it is putting on the energy market.

“We have a little high oil prices for a little while, but as soon as this ends, those prices are going to drop – I believe – lower than even before,” he told reporters.

Opinion polls show that the attack on Iran is unpopular among the US public. Increasing economic costs from the war could further diminish support for the war, months ahead of the US midterm elecitons.

ST. PAUL, Minn., Feb. 24 (UPI) — The high-profile abduction of Nancy Guthrie is focusing new attention on a little-known, but quickly growing, segment of the insurance industry known as “kidnap and ransom” in which underwriters cover clients at risk from criminals at home and abroad.

While “K&R” insurance has traditionally been seen the domain of business executives whose travels take them to hot spots across the globe where abduction risk is high, the Guthrie case shows that even within the relatively safe United States, anyone can be subjected to kidnapping or extortion, industry leaders told UPI.

As of Monday, the fate of Nancy Guthrie remained unknown. The 84-year-old mother of Today show host Savannah Guthrie has been missing from her home in Tucson since Jan. 31. Police were notified after she failed to show up to watch a live stream of a church service at a friend’s house.

Her family has been cleared in her disappearance and the case is still being treated as a kidnapping. The FBI describes the prime suspect as a male between 5 feet, 9 inches and 5 feet, 10 inches in height with a medium build and carrying a 24-liter black Ozark Trail Hiker Pack.

An unknown person’s DNA was recovered at the crime scene, authorities said.

Meanwhile, reports have indicated the Guthrie family received a ransom demand of millions of dollars to be paid in cryptocurrency.

As the search has dragged on for weeks without any substantial breaks in the case, the costs to the Guthrie family are likely mounting quickly, even excluding the potential payout of a multimillion-dollar ransom.

This has led to speculation over whether Savannah Guthrie — who has a reported net worth of $50 million — owns a kidnap and ransom insurance policy covering herself and family members.

But, if she is like the vast majority of high-net worth Americans such as top business executives, media figures, politicians, athletes and celebrities, it’s probable she does not have a K&R policy.

This is because kidnappings-for-ransom have always been rare in the United States and, as a result, the worldwide market for such policies has remained relatively small at an estimated at $2 billion in 2025.

But that figure is expected to nearly double by 2033 as buyers’ perceptions of the threat levels evolve.

“Glaring gap”

The Nancy Guthrie case, as well as a recent rash of kidnappings targeting holders of large amounts of cryptocurrency, is shining a light on what some have described as a “glaring gap” in the security measures typically taken by wealthy families, media personalities and others.

Insurers don’t want to talk about the cost of K&R policy premiums. However, according to independent estimates, basic policies can cost as little as $500 per year, but quickly rise in price as coverage expands and risks increase.

If, for instance, the policyholder is planning to travel to kidnapping “hotspots” such as Mexico, the cost will increase. Insurance for high-profile CEOs, regardless of where they travel, can ruin $10,000 or more per year, industry estimates indicate.

One of the world’s largest providers of K&R insurance is the French company AXA and its specialized division for complex risks, AXA XL. Denise Balan, the firm’s senior vice president and head of U.S. security risks, told UPI the need for these policies is evolving beyond business people traveling into risky global hotspots, although that remains a core customer base.

“You’d be surprised how many entities and individuals actually do carry this insurance, because it is a ‘duty of care’ product,” she said, meaning it is provided by businesses as part of their legal duty to protect their employees.

“So, most companies that have a significant number of employees who either travel internationally or have CEOs or board members who have concerns about threats to their physical safety or extortion, they do tend to carry this insurance.”

There are basically two elements to a typical K&R policy, Balan explained, including the obvious benefit: reimbursement of expenses and costs up to and including the ransom payment.

“But the more important aspect of the policy that you get is the service,” she said. “And that’s in the form of a security consultant. I’m sure you’ve heard a number of different security consultants who have been interviewed recently about the Savannah Guthrie case. Each insurance company that offers kidnap-for-ransom policies also offers a security service.”

The cost of the consultants, usually drawn from a small pool of well-known providers such as London-based S-RM Intelligence and Control Risks Group, is entirely absorbed by the insurer and doesn’t erode the policy limit — rather, it is in addition to the limit.

“It is a wonderful service that will give you not only response in a crisis, but will also give you preventative assistance,” Balan said. “It’s useful if a company wants to set up a crisis management plan or to do an exercise so they’d know how to react if, for instance, they get a call on a Sunday night from someone who says one of their products is going to be tampered with unless they get a million dollars.”

The provided security consultant can offer expert advice on “everything from how to speak to a kidnapper to how much ransom might be an appropriate amount to pay. They might know, for instance, that the going rate for kidnapping in Mexico is $2,500, and they can help with the negotiation, although they never speak directly to the kidnapper.”

One reason that K&R policies are generally little-known is that they’re highly confidential in nature and the potential for their abuse is high.

“You can’t be out there talking about how you have an insurance policy that pays in the event of a kidnap because there’s just so much potential for fraud,” Balan said. “So, it’s a very under-the-radar product that’s been around since probably the early 1920s.”

Another indication that threats are expanding beyond the traditional business travel sector is evident with a new phenomenon dubbed “crypto-kidnapping,” in which organized gangs utilize leaked data to locate and target high-net-worth cryptocurrency holders.

The latest such incident came Feb. 12 outside of Paris when masked assailants targeted Binance France CEO David Prinçay in a failed home invasion and kidnapping attempt — an attack that has put the entire cryptocurrency industry on high alert.

Matthew Humphries, head of crisis management at Lockton Cos., the world’s largest privately held independent insurance broker, said such incidents show the universe of who should have K&R policies is expanding.

“Kidnap and ransom insurance is available for people and organizations whose profile or operations are exposed to heightened security risks, whether abroad or closer to home,” he told UPI.

“There’s a perception that kidnapping only happens in places with obvious political or security tensions, but the risk is far broader. We’ve seen kidnapping cases emerge in places few would expect, including some high‑profile incidents targeting people in the crypto sector in the U.S., France and Canada.”

Payment for expert security teams covered

Estimates indicate as many as 25,000 kidnappings occur each year worldwide, according to another leader in the industry, the U.S.-based Travelers Cos., which warns in its literature, “If you still think it could never happen, consider this: Coercive threats to you and your business can take many forms.”

The company cites two real-life examples.

In one, the president of a company was kidnapped in his parking lot and held for five days until a ransom was paid. Costs incurred included $650,000 for the ransom, $2,000 per day for an independent negotiator, $500 per day for recording equipment used to obtain the man’s release, and $200 per day for extra security guards hired to protect his family.

In the other case, a physician’s wife was attending a conference. The physician received a call that his wife had been kidnapped and that he had two hours to wire a ransom payment. He wired the funds, but realized later that his wife was never kidnapped or in any danger — and all the while the expenses, such as the ransom payment and costs for a security team, quickly added up.

What’s essential in any kidnapping scenario is the presence of experts to advise those close to the victims, which is perhaps the most important benefit of a K&R policy, said Tracey Santor, assistant vice president for financial institutions at Travelers.

Much like AXA AL’s Balan, she emphasized the policies usually come with a crisis management team to be made available to victims’ families and paid for by the carrier.

“The firm usually consists of former law enforcement officers from a number of agencies, such as the FBI, DEA and CIA, who can often determine if a kidnapping is from a specific group and what past behavior and demands have been,” she told UPI. “The crisis team may also work with local authorities on the safety and return of the kidnap victim.”

Travelers only issues commercial K&R policies for businesses rather than personal policies for individuals, for whom they recommend another U.S. provider working with the Travelers Syndicate 5000 in London.

Asked whether heavily publicized cases such as the abduction of Nancy Guthrie can drive up demand for K&R insurance, Santor responded, “Any high-profile story in the news has the ability to influence new buyers to look to purchase coverage related to the incident.”

None of the Democratic candidates running for California insurance commissioner won the party’s endorsement at its convention over the weekend, but two surged far ahead of the field in votes.

Sen. Benjamin Allen (D-Santa Monica), won a plurality of votes with 1,056, or 41.7%, of the ballots cast by delegates at the Moscone Center in San Francisco on Saturday.

Trailing closely behind was former San Francisco Supervisor Jane Kim, who received 1,018, or 40.2%, of the ballots. To win an endorsement a candidate needed to reach a 60% threshold.

Splitting up the remainder of the ballots was former state Sen. Steven Bradford, who represented South Los Angeles County and the South Bay in the Legislature. He won 221, or 8.7%, of the votes, while San Francisco businessman Patrick Wolff, a political newcomer, got 153, or 6%, of the votes cast.

Candidates who win an endorsement benefit from the party’s voter outreach through media such as mailers, door hangers and other advertising.

The GOP field includes businessman Robert Howell, who lost by 20 points in the 2022 general election to current Insurance Commissioner Ricardo Lara. Also running are insurance agent Stacy Korsgaden from Grover Beach, and attorney Merritt Farren, whose Pacific Palisades home burned down. The Republic Party convention is April 10-12 in San Diego.

The candidates will now gear up for the June 2 primary election, with the general election set for Nov. 3.

The race for insurance commissioner typically draws little attention, but that changed after the Jan. 7, 2025, wildfires that swept through Los Angeles County, damaging or destroying more than 18,000 homes and killing 31 people.

Some insurers have been accused of delaying, denying and underpaying claims, while Insurance Commissioner Ricardo Lara has been subject to calls for his resignation over how he has handled the insurers’ response to the fires.

Allen, whose district includes the Palisades fire zone, has a platform that calls stabilization of the insurance market, which has seen carriers drop policyholders in fire-prone neighborhoods, while cracking down on insurer wrongdoing.

Despite his narrow margin over Kim, Allen released a statement saying, “Today, California Democratic Party delegates and activists sent a clear message: proven leadership and real results matter.”

Kim, who announced her candidacy in January, has garnered attention with an endorsement from U.S. Sen. Bernie Sanders of Vermont, and a proposal to cover disasters such as wildfires through a state-run program, rather than the private market.

“Despite Kim entering the race just a few weeks ago she virtually tied Allen for the most delegate votes. Everyone at the convention could see that Kim was the clear grassroots candidate,” said Kim spokesperson Catie Stewart.

In a typical election year, the interest in the down-ballot race for California insurance commissioner musters modest interest at best.

That all changed on Jan. 7, 2025, when wildfires swept through L.A. County, damaging or destroying more than 18,000 homes and killing at least 31 people.

The resulting anger directed at the insurance industry over how it has handled claims has helped draw four Democrats into the race, who will be vying this weekend for a critical endorsement at the party’s annual convention in San Francisco ahead of the June 2 primary election.

“We haven’t seen this level of competition and, frankly, choice on the Democratic side since it first became an elected office in 1990,” said Jamie Court, president of Consumer Watchdog, a Los Angeles insurance advocacy group. “They represent wide-ranging views and a broad diversity of candidates.”

Up for endorsement are state Sen. Benjamin Allen (D-Santa Monica), whose district includes the Palisades fire zone; former San Francisco Supervisor Jane Kim; former state Sen. Steven Bradford; and San Francisco businessman Patrick Wolff, who has not held elective office.

Three Republicans have declared their candidacies, but that party’s convention isn’t until April. The filing deadline to file for the race is March 6.

The GOP field includes businessman Robert Howell, who lost by 20 points in the 2022 general election to current Insurance Commissioner Ricardo Lara. Also running are insurance agent Stacy Korsgaden from Grover Beach, and attorney Merritt Farren, whose Pacific Palisades home burned down.

Peace and Freedom Party candidate Eduardo Vargas, a Los Angeles school teacher, is on the ballot too.

The race also follows Lara’s two troubled terms in office, during which he has been accused of cozying up to and receiving money from the insurance industry for his first campaign and conferences abroad.

Lara has denied any wrongdoing, and all the Democratic candidates have vowed not to accept insurance industry donations.

“For me and maybe for many survivors, it’s not a position that we ever thought much about, but now with many of our lives devastated by our dealings with insurers I think many survivors will be watching much more closely this time around,” said Joy Chen, executive director of the Eaton Fire Survivors Network, a community group that has accused Lara of being soft on insurers and has called for his resignation.

Allen was perceived by some as the leading candidate for the party’s nomination when he announced his candidacy in September. He has held his seat for more than a decade and is the only sitting legislator in the race. He said he would not be running if not for the wildfire that struck his district.

“The fire certainly was a searing experience, helping hundreds of people get their claims paid right, but it kind of begs the question of why should you have to call your state senator to get treated right,” he said.

Allen’s platform includes a number of ideas to ensure policyholders are treated better, including requiring insurers to clearly explain claim denials. But also key to his campaign is stabilizing an insurance market that over the last several years has seen insurers drop policyholders by the hundreds of thousands, especially in fire-prone neighborhoods.

That forced them onto the California FAIR Plan, the insurer of last resort. It’s rolls grew even more since the January fires and the insurer has been sued by fire victims over its claims practices. Allen wants to build insurer confidence in the market by having insurer requests for rate hikes reviewed in months, rather than the year or more they can drag out now.

He also points to his legislative record, especially his authorship of Proposition 4, which was approved by voters in 2024 and set aside $10 billion in general obligation bonds to fund climate resiliency and environmental protection projects — an important part, he said, of lowering insurance risks.

Allen has drawn a key endorsement from California Sen. Adam Schiff and as of Dec. 31 had about $1 million in the bank, more than any other candidate. But the race was shook up last month when progressive politician Kim declared her candidacy. She boasted an endorsement from U.S. Sen. Bernie Sanders (I-Vt.), for whom she worked as his California political director during the 2020 presidential campaign.

She also has drawn attention for a plan to create a state-run disaster insurance policy for Californians.

Residents would continue to buy regular home insurance from the commercial market but would buy coverage for wildfires and other disasters from the state, similar to plans in some other countries.

The idea has come under sharp criticism from Court, who said it will shift the risk of costly disasters to taxpayers while allowing insurers to make profits from more predictable perils such as water and roof damage.

“We have to explore some different models, because the current system is not working. It’s too expensive and a market failure,” said Kim, adding that the plan could evolve.

Bradford, who represented communities in south L.A County and the South Bay in the Legislature, has been endorsed by L.A. Mayor Karen Bass. He said he’s running as a pragmatist and unifier.

“What we’ve been doing for far too long has been a whole lot of finger pointing and doing the blame game,” he said.

Bradford wants insurers to open their pricing books and give homeowners “real, guaranteed” premium discounts for upgrading their property.

He also is proposing a public–private partnership that shares the risk for insurers who write policies in fire-prone neighborhoods.

Wolff, a political newcomer, is a Chartered Financial Analyst, real estate investor and former hedge manager who cites his experience building a home and auto insurance brokerage for financial services firm Capital One.

“I spent the first half of 2025 really deeply studying the commissioner’s role and the history, and the race — the politics of everything. And after really doing that deep dive, I decided to step forward,” said Wolff, who wrote his campaign a $500,000 check and loaned it another $100,000.

He also thinks rate hikes sought by insurers need to be reviewed more quickly but wants the insurance department to publish annual reports on how specific companies handled claims.

“The insurance industry has basically lobbied to keep that data anonymous at the company level, and I think it’s really important to make that information public,” Wolff said.

Under California’s open primary system, the top two candidates will move on to the Nov. 3 general election, which means two Democrats could run up against each other if a Republican isn’t able to consolidate the GOP vote.

Steve Maviglio, a longtime political consultant currently working for State Treasure Fiona Ma, who is seeking the office of lieutenant governor, said that the race is wide open.

“This is a statewide election with millions of people with candidates they’ve never heard of,” he said.

With multiple candidates seeking the endorsement, it may be hard for any single one to reach the 60% threshold of delegate votes needed.

“If no one is endorsed, somebody is going to have to be the breakout candidate, and the way you do that is with money or organization,” Maviglio said. “Until I see that happen, it’s totally up in the air.”