Shoplifting epidemic by organised criminal gangs: The impact for insurers
A new Channel 4 investigation has reported that a Romanian crime gang is behind a dramatic rise in shoplifting across the UK. The Dispatches episode: Britain’s Shoplifting Gangs Exposed, has shown the extent of this criminal network’s involvement in thefts.
Shoplifting in the UK has hit a 20-year high according to the Office for National Statistics, prompting Channel 4’s undercover investigation into the business behind these crimes. Reporter, Matt Shea tracked down a gang leader in Northampton, who was linked to over £120,000 worth of stolen goods from Morrison’s supermarkets. The goods, such as Sudocrem, Sensodyne toothpaste, and Lemsip were sold to a local wholesaler with ties to an illegal Visa scheme.
The gang leader, Gugulan, openly admitted that stolen goods were sold in the UK to buyers from the Indian community, saying, "There are 1,000 Romanian thieves in England. Everyone steals in England, and they sell it to the Indians.” Matt Shea also uncovered the role of a wholesaler involved in selling the stolen items globally, including to the Middle East and Africa. The wholesaler revealed its part in a scheme arranging fake marriages for Indian and Pakistani nationals to secure UK residency.
Channel 4's investigation highlights a black market thriving on stolen goods. A spokesperson stressed that gangs are orchestrating large scale thefts, making the UK an easy target for illegal trade.
What does this mean for insurers?
The rise in organised shoplifting has significant implications for insurers, especially those covering the retail sector. As thefts become more frequent, insurers are likely to face an increase in claims related to stolen goods. This could result in higher premiums and excesses for retailers as insurers adjust their pricing and attachment points to account for the growing risk. Insurers may also need to reassess their underwriting processes, which could potentially require retailers to implement stricter security measures.
Contents
- The Word, December 2024
- AI is creating fraudulent claims
- Death and disgrace policies: What can insurers learn about the allegations against Gregg Wallace?
- Walking the fine line: The statutory duty of candour and insurance
- FCA launches consultation on broker remuneration for multi-occupancy buildings insurance
- Insurance complaints surge continues
Author
Alex Morrissey
Insurance Wording Technician
alex.morrissey@brownejacobson.com
+44 (0)330 045 2897
Tim Johnson
Partner
tim.johnson@brownejacobson.com
+44 (0)115 976 6557
You may be interested in...
Legal Update - The Word
The Word, December 2024
Legal Update
Walking the fine line: The statutory duty of candour and insurance
Legal Update
FCA launches consultation on broker remuneration for multi-occupancy buildings insurance
Legal Update
AI is creating fraudulent claims
Legal Update
Shoplifting epidemic by organised criminal gangs: The impact for insurers
Legal Update
Death and disgrace policies: What can insurers learn about the allegations against Gregg Wallace?
Legal Update
Insurance complaints surge continues
Legal Update
The ‘grate’ cheese robbery: Implications for insurance professionals
Legal Update
Environmental crime and the impact for insurers
Legal Update
What might a Trump victory mean for the UK insurance industry?
Legal Update
Post Office scandal: Lessons for underwriters
Legal Update
Weather protection parametric insurance: A sign of things to come?
Legal Update - The Word
The Word, November 2024
Legal Update - The Word
The Word, October 2024
Legal Update
Updates to the UK’s Arbitration Bill
Legal Update
Ozempic: The rising costs and coverage issues of weight loss medication
Legal Update
ICAEW: Changes to PII requirements
Legal Update
Contractor insolvency: Peabody Trust v NHBC
Legal Update
By a narrow 2 to 1 majority, the Court of Appeal finds in favour of insurers in the construction of an exclusion clause in a W&I policy
Legal Update
LMA binders’ consultation
Legal Update
Smooth sailing ahead: The LMA's new Open Form Default Clause
Legal Update
PFAS: The issue that won’t go away
Legal Update
Oklahoma earthquake: Racial discrimination in adjudication
Legal Update
Vicarious liability for kinship foster carer abuse: Implications for local authority insurers
Legal Update - The Word
The Word, September 2024
Legal Update
Latest short-term insurance trends
Legal Update - The Word
The Word, August 2024
Legal Update
Words matter: Another case on the importance of accurate drafting
Legal Update
London Fire Brigade to stop attending for automatic fire alarms: Implications for insurers
Legal Update
Navigating Oil Price Cap legislation: LMA issues revised Cargo and Hull wordings
Legal Update - The Word
The Word, July 2024
Legal Update
Multi-occupancy building insurance: Latest tribunal decision
Legal Update - The Word
The Word, June 2024
Legal Update - Consumer Duty
Updated UK Consumer Wordings Guidance: Browne Jacobson collaborates with the LMA
Legal Update - Consumer Duty
From products to protection: The rise of embedded insurance
Legal Update
The European Accessibility Act: Inclusive products and services
Legal Update
Final FCA anti-greenwashing rule guidance published
Legal Update - The Word
The Word, May 2024
Legal Update
New guidance on supporting autistic customers for the insurance industry
