Security firms told cut risk, cut cover cost
24 September 2008
Advances in crime prevention technology and risk management systems for cash in transit may lead to a reduction in rates for clients, says broker Aon.
Memories of the £53m heist in Kent in 2006 and the 2004 robbery of £26.5m from the headquarters of the Northern Bank in Belfast have not faded. But the highly-specialist cash in transit insurance sector is changing.
“Technology has moved on,” says Daniel Smith, Director of Aon’s fine art & specie team. “Security firms need to challenge their brokers and underwriters to structure insurance coverage that suits their individual needs. But to do so you have to communicate clearly what risk management systems you have in place.
“The vast majority of firms spend a great deal of time and money on their risk management, but smaller firms in particular are not as successful in conveying the fact to the underwriters at a time when they could be rewarded in terms of their premiums if they were to do so.”
Lloyd’s and the London market remain the global centre for compulsory cash in transit insurance—which covers theft or damage of money or valuables while in storage or in transit—accounting for over 80% of the global risks.
However, with existing underwriters currently looking at capacity levels for the year ahead, and the recent arrival of new capacity, there may be changes afoot for the sector.
Last updated on 21 Dec 2009
