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- "The only way that kidnapping can work as well as it does is that the kidnappers understand that they're in a repeated business," Anja Shortland, an economist at King's College London, who's written a book on the K&R insurance market, explained to The Week. "They keep their promises this time and they treat the hostages well this time because they know that if they don't then their business will decline in the future."
That's where the private firms who provide the consulting and the insurance coverage come in: "It's a one-off transaction between the family and the kidnapper, but it's a repeated interaction for the insurance market," Shortland said.
Shout out to goobster, just because I recently brought the subject up in a thread of his.