Sales of luxury watches are a big thing in Hong Kong and Southern China, which is where many wealthy people live and work. The risks of loss, damage or theft are perhaps not as high in Hong Kong as some other parts of the world, but still there is an obvious need to cover a £15,000-£70,000 Patek, Rolex, Hublot, Richard Mille, Vacheron or Jacob & Co one off timepiece.
YAS Insurance has just launched TimeCare, which utilises blockchain technology to ID the watch. It’s a trend that has been catching on with luxury watch manufacturers themselves recently. Breitling launched their digital watch passports a few years back. Richemont Group, LVMH and Prada all use Aura, a system which provides a unique ID for the watch or luxury handbag etc and tracks the service history, ownership, location and so on. This makes it much harder for thieves to sell on stolen watches, since any authorised dealer or Police agency can identify the watch very quickly.
The twist with YAS is that cover is embedded, so it can sold at the point of purchase as a peace of mind add-on. In the UK TH March offers an embedded (non blockchain) cover scheme for watch and jewellery retailers, but it has a £7500 limit, which is well below the new RRP/value of most luxury Swiss watches.
There is definitely an opportunity for an insurer or broker to organise an embedded product lines deal up to £40,000 per watch with a major retailer like Watches of Switzerland, Chisholm Hunter or Beaverbrooks. Or a major manufacturer like LVMH, Richemont or Swatch Group. Richemont also owns the Watchfinder.co.uk pre-owned website, so there is the opportunity to test a data-driven embedded insurance product there, perhaps with features like an agreed valuation and goods in transit cover.
Here’s the word from YAS;
TimeCare stands out from traditional insurance policies through its distinctive features. Firstly, it seamlessly integrates insurance coverage into the watch purchase process and simplified applications. Secondly, leveraging state-of-the-art blockchain technology, TimeCare enhances security, transparency, and efficiency in claims processing, establishing an indisputable record of ownership and authenticity.
This high level of coverage is delivered through a fully digital format, ensuring a seamless and confidential experience with a quick and convenient registration process. When select customers purchase a luxury watch, they can effortlessly enroll in the TimeCare insurance program through a simple integrated process, guaranteeing a hassle-free experience and immediate coverage for their treasured timepieces.
TimeCare securely and permanently records policy details, coverage information, and watch records, including guarantee card details, ensuring transparency and peace of mind for watch owners. With TimeCare, customers can enjoy peace of mind from the moment of purchase.
This partnership between Oriental Watch Group, YAS, and QBE Hong Kong reflects their unwavering commitment to innovation and customer satisfaction, redefining insurance offerings in the luxury goods market.
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