Luxury watch insurance claims rise as insurers warn of upward trend in theft-related losses

New research from The Watch Register, a global database of lost and stolen luxury watches, has indicated a marked increase in insurance claims linked to high-value timepiece theft and loss.

A survey of insurance loss adjusters and claims managers across the US, Europe, Asia, and the Middle East found that luxury watch-related claims have risen significantly in recent years.

Two-thirds of respondents reported an increase in claim volumes of between 10% and 25% compared with three years earlier, while a further 9% cited rises of between 25% and 50%.

Overall, insurers recorded an average 17% increase in luxury watch claims over the period.

Regional differences were also identified, with respondents in Asia reporting the highest average increase in claim volumes at 21%, compared with 15% in the US.

The findings also suggested continued upward pressure on claims. More than half of respondents expected claims to increase by a further 10–25% over the next three years, while nearly one-third anticipated rises of between 25% and 50%.

A small proportion forecast increases of up to 75%, with the mean expected rise standing at 24%.

The Watch Register said the results underlined expectations that luxury watch theft would remain a persistent challenge for insurers globally.

Separately, the study found that 77% of respondents reported an increase in defective title claims from jewellers’ block policyholders who had unwittingly purchased stolen watches.

In response, 83% of insurers said they were now requiring evidence of due diligence before paying out defective title claims, including confirmation that stolen watch databases had been checked prior to purchase.