Some data on UK luxury and Swiss watch theft, which remains a problem despite the brave undercover work carried out late last year in London;
The number of luxury watches registered by insurers on The Watch Register, which holds the world’s largest and most established international database of lost and stolen watches, increased by 25% in 2023 when compared to 2022. Thirty per cent of the watches on the database valued at £450 million were registered by insurers. The total value of all watches registered is estimated to be £1.5 billion.
The report highlights the need for increased collaboration from all stakeholders, including insurers, auction houses, watch dealers, watch manufacturers and global law enforcement agencies, to support a single, centralised database for the registration of lost and stolen watches worldwide. This enables due diligence checks by the trade to be considered complete.
The insurance sector is one the key beneficiaries in the recovery of stolen and lost watches, as some 70% of all watch recoveries via the Register are undertaken on behalf of an insurer, who has already settled a claim for the owner.
The organisation estimates that the total value of recovered watches could see the sector recoup millions of pounds in settled claims if serial numbers were always obtained prior to loss. Ten per cent of all watch matches show evidence of fraud, for example watches claimed for and subsequently sold by the policy holder, as well as the use of counterfeit watches and paperwork purchased online to support a bogus claim.
Katya Hills, Managing Director at the Register said:
“The insurance industry was one of the founding partners of the Art Loss Register, our parent company, and knows from experience that only one recognised due diligence database will be effective. The sector already supports single reference databases such as the Claims and Underwriting Exchange (CUE), Motor Insurance Anti-Fraud and Theft Register (MIAFTR) and Insurance Fraud Bureau (IFB), and with the continued escalation of watch crime and associated insurance fraud, the same approach is required for watches.
“Some insurers estimate that fraudulent activity surrounding luxury watch claims may stand as high as 50% or more. Common scenarios include fictitious losses, or a watch being used to make multiple claims with different insurers. Furthermore, the growth of the pre-owned market and long waiting lists associated with the most desirable models means that a growing proportion of owners are insuring pre-owned watches, which carry a risk of being counterfeit or subject to an existing claim.
Be the first to comment