Insurers and their affluent clients have been warned about a massive spike in missing and stolen luxury watches in 2023, with last year touting a figure that far surpassed 2022’s.
According to THE WATCH REGISTER, the global database for tracking lost and stolen timepieces, 2023 saw a 25% increase in either lost or stolen watches compared to the previous year.
Three in 10 entries (30%) on the database, with a value of £450 million, were registered directly by insurance companies. The overall valuation of watches recorded on THE WATCH REGISTER is estimated at £1.5 billion.
The report also suggests that the insurance industry could reclaim millions of pounds in settled claims if serial numbers were consistently recorded before loss or theft occurs. One in 10 (10%) of all matches on the database suggest fraudulent activities, including policyholders selling watches after a claim has been settled or the submission of claims based on counterfeit watches and documents bought online.
Katya Hills, the managing director at THE WATCH REGISTER, emphasised the necessity for a singular, authoritative due diligence database for watches, drawing parallels with existing databases like the Claims and Underwriting Exchange (CUE), the Motor Insurance Anti-Fraud and Theft Register (MIAFTR), and the Insurance Fraud Bureau (IFB).
“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,” Hills said. “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.”
The surge in the pre-owned watch market and lengthy waitlists for higher-end models have led to an increase in insured pre-owned watches, a development which presents the additional risks of counterfeiting or previous claims.
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