Organised criminal networks are believed to be responsible for around one in every 10 luxury watch insurance claims, highlighting growing concerns over fraud and theft risks in the high-value personal assets segment.
The findings indicate that criminals are increasingly targeting luxury watches due to their high value, portability and resale potential. These items can often be transported easily and sold through informal or online markets, making them attractive targets for organised theft networks.
Luxury watches, particularly premium brands, have become a significant area of concern for insurers due to rising claim values and increasingly sophisticated fraud attempts. Some claims involve genuine theft incidents, while others may involve exaggerated losses or fraudulent reporting.
Insurers are responding by strengthening claim verification processes, improving risk assessment methods and using specialist expertise to investigate suspicious claims. Detailed documentation, ownership records, purchase invoices and authentication reports are becoming increasingly important in assessing high-value watch claims.
The issue highlights broader challenges faced by insurers covering valuable personal assets. High-value items require specialised underwriting approaches because traditional property insurance assessments may not fully capture risks associated with theft, authenticity and resale markets.
Technology is also playing a growing role in fraud detection. Insurers are using data analysis, claim pattern monitoring and investigation tools to identify unusual behaviour and potential organised fraud activity.
The rise in luxury watch-related crime reflects the wider challenge of insurance fraud across personal lines. Fraudulent claims increase costs for insurers and can ultimately affect premiums for genuine policyholders.
Insurers are therefore focusing on prevention as well as claims management by educating customers about security measures, proper valuation and safe storage of valuable items.
As luxury assets continue to attract criminal attention, stronger collaboration between insurers, law enforcement agencies and specialist investigators will be important in reducing fraud and protecting policyholders.
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