16/12/2009 - Jewellers face insurance price hike
Retail jewellers risk facing a large hike in insurance premiums in the 2010 renewal season if they fail to adequately review their risk management and security practices, warns insurance broker Marsh.
The advice comes after a wealth of losses in the diamond and jewellery market throughout 2009, ranging from fraudulent valuations and 'stone-switching' to robberies of high-value items.
The beleaguered market has also seen a downturn in the wholesale value of certain classes of diamonds and precious stones, as well as a noticeable fall in demand from consumers.
A vice president in the special practice of Marsh, Jonathan Ballard, said: "Sophisticated crime syndicates are taking advantage of the current security procedures in the high-end retail sector, which are often weighted more towards creating a more positive customer experience than the overall protection of the products. For example, many high-end stores have their inventories freely available on the internet, or potential customers are able to just walk in off the street."
Copyright © Press Association 2009
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