The motor insurance coverage sector has been grappling with a surge in automobile theft – an issue most prevalent within the high-value automobile market.
In 2022, automobile thefts noticed an alarming 25% year-on-year enhance, based on ONS information – a pattern attributed, partially, to the cost-of-living disaster and the escalating worth of used automobiles.
The shortage of obtainable used automobiles is inserting them in larger demand, making them engaging targets for thieves and driving up the potential resale worth for stolen automobiles. Because of this, insurers are pricing towards this, bumping up premiums extra for drivers with larger worth automobiles in comparison with the remainder of the market.
However the acceleration in thefts isn’t the one factor pushing up premiums for high-value automobiles. The impact of claims inflation is amplified for these automobiles, attributable to larger price of alternative components (comparable to semiconductor chips and sensors), in addition to provide chain points with newer fashions.
The repercussions of those tendencies are evident. Autos valued over £40,000 have skilled a staggering 50% enhance in insurance coverage premiums for the reason that starting of the yr, and this notable surge has pushed firms to undertake proactive measures. In Could this yr, Aviva took the step to difficulty warnings to their purchasers in regards to the sharp rise in thefts of SUVs and luxurious automobiles. This highlights the give attention to limiting publicity to claims for high-value property.
DVLA information exhibits that sure automotive manufacturers are at a better threat of theft. Land Rover has emerged as essentially the most often stolen automotive model by a major margin. Notably, six of their fashions have secured positions within the High 10 most stolen automotive fashions within the UK, as recorded within the yr ending March 2023. The Vary Rover Velar R-Dyn was discovered to be essentially the most focused. This pattern is compounded by experiences suggesting vulnerabilities in Land Rover’s safety, together with points with keyless know-how.
Jaguar Land Rover CEO Adrian Marshall admitted final month that the quantity of Vary Rover and Vary Rover Sport thefts, notably in giant cities, has turn into an issue. The issue is so acute in London that Vary Rover house owners are actually being denied insurance coverage or supplied unaffordable premiums, as reported in Autocar earlier this yr.
Sadly, the automotive theft pattern isn’t set to decelerate anytime quickly. File low automotive provide sits towards a backdrop of excessive demand, driving up the worth of second-hand automobiles and components, making automotive theft a profitable and interesting enterprise, particularly to these hit hardest by the deepening cost-of-living disaster.
Regardless of this inevitability, there’s a slither of hope on this escalating nightmare. This month, the Authorities introduced plans to ban keyless automotive hacking tools, underneath plans presently being thought-about by ministers and police chiefs. Nevertheless, their efforts can be futile with out help throughout the motor trade. It’s time for all sides to return collectively – Authorities, producers and insurers – to determine a united means ahead to securing higher shopper outcomes.
Perceive and optimise your aggressive place.
Market View is an insurance coverage market benchmarking answer that gives a uniquely complete understanding of market dynamics, competitor behaviour and model positioning throughout the normal insurance coverage trade.