The increase has been primarily driven by claims
involving multiple vehicles, parts and a resurgence of catalytic converter
thefts.
Catalytic Converters Theft
Most modern cars are fitted with catalytic
converters, a pollution-control device fitted to the vehicle’s exhaust system
to reduce harmful emissions from the engine. By using catalyst metals –
typically platinum, palladium and rhodium – gas emissions passed through the
converter are transformed into less toxic substances such as oxygen and water.
Although only very small amounts of these metals are used, they are valuable
commodities fetching up to $1000 USD per ounce. This means converters are an
attractive target for thieves. Although not all instances have followed the
same pattern, the marked increase since the latter half of 2015 has a number of
common trends:
• Light commercial vehicles have been specifically
targeted (especially Mercedes Sprinters and VW Crafters). Vehicles with high
vehicle axles are also being singled out as they give easier access to the
catalytic converter, as are vehicles that have adopted the Euro 6 CAT standards
of reduced exhaust emissions.
• The majority of thefts appear to be in the areas
surrounding Sheffield, Leeds and notably Manchester in the North. Areas in the
South and East of London are also highly affected. The effect has been
primarily to motor trade clients but we’ve seen some of our commercial fleet
clients also being targeted.
Vehicle Theft
The number of instances of multiple vehicle thefts
has also been on the rise. These thefts appear to be conducted by organised
gangs, able to arrange for more than one vehicle to be stolen and moved on at a
time. Again, there have been a number of commonalities:
• The premises have been “scoped out” beforehand,
sometimes by people posing as potential customers.
• The highest severity instances occurred where
access to multiple vehicle keys was possible alongside poor key security
management.
Parts Theft
In addition, there has been an upsurge in the
number of parts thefts. As above, these appear to have been carried out by
thieves able to move large quantities of items.
Common trends include:
• Particular targeting of BMW and Land Rover parts.
• High-performance tyres and alloy wheels
especially where left unsecured.
It’s apparent that vehicle dealerships are
particularly at risk of parts, vehicle and catalytic converter theft. This is
especially so for risk locations with minimal physical security and protection
deterrents.
Impact
Although vehicle sales make up the majority of
risks affected, repair garages and body shops that keep customer vehicles on
site have also been targeted. Specifically for catalytic converters, the cost
of each stolen item costs an average of £1,900, not to mention the
inconvenience caused to businesses and their customers. This in turn adds
Credit Hire (and associated costs), as well as the detrimental reputational
impact to the client.
Mitigating the Risk
Be aware of the current trends and
of appropriate risk management measures which can help to reduce the risk.
In particular:
• Adopting deterrent measures such as detector-activated
remotely monitored CCTV and monitored security alarms. Removing
theft-attractive items from sight or to inaccessible areas, security lighting
and property marking devices can also help.
• Physical protection measures for instance,
vehicle bollards, defensive vehicle parking strategies, palisade fencing, use
of robust locks and key cabinets, and fitting of catalytic converter guards.
• Effective key security management and access
control including regular audit checks of where keys are and who has signed
them out.
• Regular security audits, such as daily fence
checks for damage and signs of attempted entry, ensuring lighting is working
and fixed where appropriate, and reviewing CCTV coverage and detection.
Where you have specific questions,
please contact our account handlers for advice and guidance.
<Article courtesy of Allianz>