Specie & Jewellery
Market softens as insurance appetite grows
The insurance market for Specie & Jewellery is softening and the appetite for general specie lines of business is growing. We expect this trend to continue for the remainder of the year whilst insurers attempt to meet their upgraded growth plans.
Changes in policy terms and conditions
Insurers are becoming more flexible when it comes to difficult-to-place risks. Protection against third party fraud for example is achievable for certain business profiles. Requests for bigger shipping limits for overnight couriers are very challenging to place, though, as it is a major loss driver for the market.
Notable claims
There is a rising trend worldwide towards very violent and organised attacks on jewellers and private individuals wearing jewellery. Furthermore, we are seeing rising attritional losses related to non-delivery of overnight courier shipments.
Geographic/sector differences
Insurers are competing aggressively for US and European business, mostly on price rather than coverage. Competition is less strong for risks in Latin America and Africa
Insurers are becoming more flexible when it comes to difficult-to-place risks.
Outlook
Expected range in rate changes for the next 6 months for claims-free portfolios
Re-marketing risks is driving competition and hence premium savings. Most renewals are flat and there may be opportunities to save premium by re-marketing the risk.
Expected capacity change in the next 6 months for claims-free portfolios
We are seeing insurers’ line sizes increasing, suggesting that they are keen to grow their market share in Specie & Jewellery.
Expected coverage change in the next 6 months for claims-free portfolios
While overall we don’t expect much change, for some accounts there may be opportunities to expand coverage levels at renewal.
The insurance market for Specie & Jewellery is softening and the appetite for general specie lines of business is growing.
Emerging risks
Theft is trending upwards, and theft cover is a already popular amongst businesses operating in Specie & Jewellery. However, it is worth noting that policy language for Theft policies can vary substantially, and this can be the decisive factor for a claim being partially paid, fully paid, or not paid at all.
Renewal recommendations
Make sure you understand the coverage to avoid being under- or uninsured in case of a claim. Ask your broker to review and challenge your current insurance contract and the contract you have with the logistics provider to address any gaps in cover. Any ambiguity in a contract can negate or compromise your policy response.
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