The Unique Role of Lloyd's in Insuring Unconventional Risks

Anja Shortland of King's College London talks about her book Kidnap with EconTalk host Russ Roberts. Kidnapping is relatively common in parts of the world where government authority is weak. Shortland explores this strange, frightening, but surprisingly orderly world. She shows how the interaction between kidnappers, victims, and insurance companies creates a somewhat predictable set of prices for ransom and creates a relatively high chance of the safe return of those who are kidnapped.