The Insurance Crime Bureau Highlights the Cost of Crime in South Africa

Crime in South Africa has come under the spotlight once again, with the release of the latest police crime statistics report for 2014/2015. As one of the custodians of the insurance industry,The Insurance Crime Bureau has highlighted some key crime trends which have had a direct impact on insurance claims costs and frequency.

These statistics have been gathered by The Insurance Crime Bureau, through its member companies, and provides a snapshot of crimes perpetrated against individuals such as vehicle theft, theft from motor vehicles, house robberies, and vehicle hijackings over the last twelve months. Although these figures may not be fully representative of the challenge in South Africa, they paint a picture of how crime shifts as a result of changing behaviours and improved technologies, as well as the cost implications that this has had particularly on the insurance industry.

Most notably, the data collected shows a decrease in vehicle theft of 13.8% from last year, resulting in pay-outs in excess of R900 million. However, next to an increase of 29% in vehicle hijackings the decrease in vehicle theft cannot be viewed as a win for the country. According to The Insurance Crime Bureau Chief Executive Officer, Garth de Klerk; “The decrease in vehicle theft directly affects the increase in hijackings as it is becoming more difficult to steal a vehicle, which leads to criminals resorting to more violent methods.” Theft out of motor vehicles also seems to be costing the industry, with reported claims in the region of R 80 million.

Trends supported by statistics indicate that house robberies similarly have decreased by 12% while business robberies have risen by 24%, resulting in a combined claim value of R1.6 billion. “As crime adapts to changes in society, so must we to reduce the scourge. This can only effectively be achieved if organisations work together with the SAPS and other crime-fighting bodies to devise and implement strategies to thwart criminal activities”, says de Klerk.

While these amounts only represent approximately 15% of claims within the South African insurance industry, The Insurance Crime Bureau foresees these trends as being indicative of challenges South Africa may face in combatting crime on a daily basis.