- Vehicle hijacking and theft claims in South Africa have surged, with a 92% increase in theft claims and a 32% increase in hijacking claims, primarily targeting high-value vehicles and delivery trucks.
- Insurers like Santam are grappling with a 128% rise in high-value vehicle theft claims on the commercial side, forcing them to take corrective actions, including enhancing vehicle tracking and promoting security measures.
- Criminals have shifted their focus from older, low-value vehicles to more expensive double cabs, SUVs, and trucks, particularly those under popular brands, resulting in increased demand for their parts in the black market, while also causing geographical shifts in theft hotspots.
South Africa is facing a dire challenge as vehicle hijacking and theft claims reach unprecedented levels, casting a shadow over the insurance industry. Santam, one of the leading insurance providers in the country, recently unveiled its Insurance Barometer report for the 2022/23 financial year, concluding in the first half of 2023. The report is causing alarm bells to ring, revealing a staggering 32% increase in hijacking claims and a more alarming 92% surge in vehicle theft claims. These figures represent a stark shift in the criminal landscape, as thieves target newer, high-value bakkies and SUVs, thereby underscoring the need for comprehensive security measures.
A Disturbing Trend
Santam’s Insurance Barometer report for the 2022/23 financial year serves as a stark reminder of the perilous times facing vehicle owners and insurers in South Africa. The report highlights a concerning pattern, one that has seen vehicle hijackings and theft claims skyrocket, with no signs of abating. The data reveals a disconcerting 32% surge in hijacking claims, coupled with a staggering 92% increase in vehicle theft claims. This trend has raised red flags across the insurance industry, calling for a proactive approach to tackle the issue.
High-Value Vehicle Thefts on the Rise
Of particular concern is the increase in high-value vehicle theft claims on the commercial side, which shot up by an alarming 128%. Delivery trucks, often transporting valuable cargo, have become prime targets for criminals. These statistics emphasize the significant losses insurers like Santam are incurring due to the increasing audacity and innovation of carjackers and thieves.
Santam’s Response to the Crisis
Santam’s report indicates that its incurred claims for high-theft-risk vehicles have reached alarming levels, standing at 6.32 times higher than the 2019 base measure and more than double the incurred claims for 2021. In response to this crisis, Santam has initiated several corrective measures to minimize exposure. This includes a doubling down on vehicle tracking systems, engaging with vehicle manufacturers to address tech-related vulnerabilities, and promoting Faraday pouches to prevent the cloning of keyless access signals.
The Shifting Target: High-Value Vehicles
Santam’s report outlines a noticeable shift away from targeting older, low-value vehicles with limited security features. Criminals have now set their sights on more expensive double cabs and SUVs. This trend aligns with the experiences of private security firms, including Fidelity ADT. According to Fidelity, popular vehicle brands such as Toyota, VW, Ford, and Nissan are common targets for criminals. Specific models under these brands, including Toyota Hilux, Fortuner, and Corolla, as well as VW Polos and Nissan NP200s, are frequently hijacked or stolen. Interestingly, high-value cars such as Toyota Prados and Toyota Land Cruisers are among the top choices for criminals, along with the Hilux bakkie and Fortuner SUV.
The Demand for Parts and Accessories
There are no specific reasons behind the selection of these vehicles for theft, aside from their popularity. Experts suggest that many of these high-value targets align with the country’s most popular cars sold each month, such as the Hilux and VW Polo, which creates a robust demand for their parts and accessories in the black market. This demand further incentivizes criminals to target these vehicles.
Hijacking of Valuable Cargo Trucks
In addition to high-value vehicles, Santam’s report and Fidelity have also noted an increase in the targeting of trucks carrying valuable cargo. Specifically, the Hyundai H100 has been a prominent target in this category. This alarming trend puts further pressure on insurers and business owners to secure their assets and deliveries.
Geographic Trends and Keyless Access Vulnerability
Santam’s report reveals other intriguing sub-themes in vehicle hijacking and theft statistics, including the concentration of risks in geographic areas close to border crossings and the rise in thefts involving vehicles with keyless access. Stolen vehicles have extended from Gauteng into areas of KwaZulu-Natal and Mpumalanga, with some exiting the country into African territory. To address these risks, insurers, including Santam, have been compelled to introduce mandatory hijacking and theft countermeasures.
Impact on the Insurance Industry
The rampant number of hijackings and vehicle theft claims in South Africa has resulted in the motor insurance class remaining the most significant contributor to premiums in the South African short-term insurance market. This places immense pressure on insurers and policyholders alike to adopt and invest in more robust security measures, including tracking systems, surveillance, and secure vehicle storage, to mitigate the escalating risks associated with vehicle theft.
In conclusion, the alarming increase in vehicle hijacking and theft claims in South Africa is posing a significant challenge to the insurance industry. With criminals now targeting high-value vehicles and even trucks carrying valuable cargo, it is imperative for vehicle owners, insurers, and security experts to work together to address this escalating issue. The Insurance Barometer report released by Santam serves as a wake-up call to the nation, underlining the need for comprehensive security measures and vigilance in safeguarding valuable assets on wheels.
Source: rateweb