Ecuador’s growing security risk
The re-election of Ecuador's youngest ever president (he was 35 when first elected), Daniel Noboa in April 2025, was largely delivered on the back of a promise to crack down on a rapid rise in criminality which has seen the country achieve the unwelcome status as one of Latin America's most violent nations. According to the organisation Human Rights Watch, homicides in Ecuador increased by 429% from 2019 to 2024, while one in three Ecuadorians has reported being a victim of crime.
Killings, kidnappings, extortions and corruption are now endemic features of Ecuador’s security situation, causing concern both for local businesses in Ecuador and international organisations, as well as wealthy private families. “The deteriorating security picture in Ecuador is a worrying issue for businesses with commercial interests in the country, particularly those with personnel based there or who need to travel within the region. That is why taking robust security precautions is critical,” says Hiscox’s Angie Tijerino – Senior Vice President K&R US and Latin America, “and where the crisis management assistance available through a kidnap and ransom (K&R) insurance policy both before, during and after an incident can play an important role.”
A once stable nation
Security hasn’t always been a problem for Ecuador. Back in the 2000s and 2010s, the country’s murder rate was amongst the lowest in the region at just under six per 100,000 inhabitants. By the late 2010s, however, a change of political administration together with the impact of the COVID pandemic and widespread corruption – the country currently places 121 out of 180 in Transparency International’s Corruption Perception Index – saw Ecuador descend into increased lawlessness. “In addition to its home grown criminal organisations,” says Tijerino, “Ecuador’s dollar driven economy with lots of cash in circulation, and a failure to forcefully apply anti-money laundering laws, attracts criminals and gangs from abroad, such as ex-FARC dissidents from Colombia, Tren de Aragua (a transnational criminal organisation from Venezuela), as well as European gangs from countries like Albania and Italy.”
Problems in the ports
This situation means that particular areas of Ecuador are more dangerous than others, says Tijerino: “Guayaquil and the whole coastal area are where gangs are most active and competing for ‘clients’ and territory with each other.” In addition, she adds, all other Ecuadorian port cities – Manta, Salinas, Esmeraldas and Machala/Puerto Bolivar – are also badly affected. In terms of impacted industries, agriculture, such as fruit growers, and aquaculture are increasingly being targeted and exposed to threats of violence along the entire coastal region.
The security situation is not so acute in the capital Quito and the highlands, but these regions are still, to a lesser degree, experiencing similar problems to the coastal regions and cannot be isolated from the consequences of criminal gang activity happening elsewhere. “Most high-net-worth families prefer to live in the cooler highlands but have their business operations in the coastal areas and are indirectly exposed to criminality that happens elsewhere,” says Tijerino.
The extortion risk
What then does this mean in terms of risk for families, businesses and organisations both based in Ecuador and with interests in the country? The traditional kidnap risk alongside the newer trend of express kidnapping continues to be an issue but a more generalised extortion tactic is becoming increasingly commonplace, says Tijerino: “Extortion for financial gain comes in all shapes and forms; by phone call, email, paper letter/announcement, messaging apps like WhatsApp, and by physical face-to-face visits. Often, an extortion threat will mean a business faces making a monthly payment to the criminals, with these payments tending to increase over time. Some business owners see this protection money (often known as 'vacuna') as simply a cost of doing business in Ecuador.”
Manage the risk
With local security resources stretched, wealthy families and businesses in the region must take steps to carry out their own risk assessments and understand what they need to do to minimise the risk of falling victim to a kidnapping or extortion, and what to do if the worst should happen. “We have found, for example, that many businesses do not have agreed crisis management plans in place and do not know how to handle certain security situations," says Tijerino. A K&R insurance policy can help in that crisis preparation. “Getting organised and having processes and procedures in place before a crisis is critical,” adds Tijerino. “What happens if an employee is kidnapped or goes missing? Who in the business takes responsibility? Does that business have family or emergency contact details to let the family know? Does that employee have medical needs that need to be taken into account, such as the use of regular medication? What is the protocol to ensure a safe resolution of the crisis?”.
Access the necessary security expertise
K&R insurance helps families and businesses both lower the risk of falling victim to criminality in the first place, but also in knowing what to do should the worst happen. “Having on the ground support at a critical time from proven and experienced crisis management experts is vital,” says Tijerino, alongside the reassurance that covered costs related to the incident will be met. “With the security situation in Ecuador unlikely to improve in the near future, wealthy families and businesses are all at risk and need to take steps to strengthen their security and have access to the necessary crisis management resources should they fall victim to criminality,” concludes Tijerino.