Theft & attempted theft insurance claim trends
During lockdown with people working from home and non-essential shops shut down burglary and shop-lifting claims fell sharply and even after the lifting of lockdown restrictions, claims remained at very low levels.
There is a suspicion that this is contributed to by a lack of reporting, especially amongst lower value incidents within SMEs, however the trend remains downward.
I approached many different insurers for some statistical data regarding the nature of property theft, they could only provide nationwide data, however if I then compare this with claim data from our own client base, the results are similar.
The pattern, rather than being attributed to any type of claim or property, was based around circumstance or more specifically “a change in circumstance”.
Where there has been a change in security, attendance, or use, mostly as a direct consequence of the Pandemic, consequent social distancing, and remote working at a premises, this presents an opportunity to a would-be thief.
This indicates a more sophisticated level of crime, where careful planning and timing results in the criminal over-coming physical security to achieve their goals, rather than traditional “smash & grab” or opportunistic theft.
We’ve seen numerous instances where alarms are set-off on multiple occasions over a weekend, forcing the business owner (or key-holder) to mistakenly assume the alarm is faulty, deactivate and then return to work on Monday to find out there has been “break and entry”.
Repeat offenders
Another pattern identified by insurers, although I can only find one example from my own client base over the past 3-years, is that of repetition, the same claim or attempted theft happening to the same client within a 12-month period.
Usually relating to power tools, the assumption is that once you’ve experienced a theft you will replace the items, which will often mean newer and better tools making them even more attractive in the future.
Cable theft
Cable Theft has become a national problem that costs insurers £700 million every year. The problem is set to continue as overseas demand for metals, particularly in China and India, drives up prices in Europe and this makes cable theft even more attractive.
Vehicle theft
Vehicle theft is a constant menace, particularly if you drive an exotic or high value vehicle. Most if not all insurers would now insist upon a tracking device fitted to any vehicle value more than £50,000, resulting in an increase in “up-front” costs. An acceptable insurance rated tracking device can cost between £1000 and £1500 for fitment and 3-year subscription.