With thieves increasingly targeting high-end timepieces, watch owners are turning to dedicated insurance policies to protect their investments. We explore the growing trend of luxury watch theft and the challenges faced by the watch insurance industry
The luxury watch market is currently facing a troubling rise in thefts, compelling owners to enhance their insurance coverage to protect their valuable possessions. As high-end timepieces become increasingly desirable, criminal elements have adapted, targeting affluent individuals and watch retailers in urban centres around the globe.
According to a study by luxury watch e-commerce portal Watchfinder & Co, in 2022 London was a major hotspot for luxury watch thefts, with more than 6,000 watches stolen, and a staggering £4 million in losses from just 300 incidents between April and September, as reported by Evening Standard in the UK. This trend is not limited to London; cities like Paris, Geneva and Zurich are also experiencing a surge in watch-related crimes. For instance, Paris saw a 31 per cent increase in luxury watch thefts during the first half of 2022, according to UK insurance company Stanhope. The Watch Register, a database tracking stolen watches, recorded a 60 per cent increase in newly documented thefts in 2022, totalling about 6,815 watches with a cumulative value exceeding £1 billion, as per a report by GQ magazine.
The increase in thefts can be attributed to several factors, including the pervasive influence of social media, which showcases luxury watches and makes them easily recognisable to potential thieves. Norman Tontsch, an expert in wealth creation and watch insurance at Allianz in Cologne, says, “Five years ago, watch thefts were significantly lower. Now, social media has made it easier for anyone to identify high-value watches.”
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Norman Tontsch, an expert in wealth creation and watch insurance at Allianz in Cologne (Photo: courtesy of Norman Tontsch)
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High-profile incidents involving celebrities, such as Formula One drivers Carlos Sainz and Charles Leclerc, who had their Richard Mille watches stolen in public, underscore the risks faced by even the most vigilant watch owners. The Instagram personality Danar Widanarto, known as Mr Watches or Chronondo, recently fell victim to a brazen theft when his coat, which had dozens of watches sewn into it, was stolen from his home in Cologne last December. Known for showcasing luxury watches and sharing insights about the industry, Mr Watches has a substantial following, and his experience serves as a stark reminder of the risks involved in displaying high-value items publicly.
“It happened on December 23, 2023, when I was not home. They broke into my apartment between 11am and 1pm, took [watches including] one rare Cartier and my signature green watch jacket with more than 100 fashion watches attached to it,” says Widanarto. “After six months, I feel insecure in my own apartment, even after I found out that it was not a targeted robbery. After it happened, I needed to take a break from social media because I was not ready to entertain the watch community.”
As the threat of theft escalates, so does the demand for specialised watch insurance. Traditional homeowner’s insurance policies often fall short, typically covering watches only within the home. To ensure comprehensive protection, owners are increasingly opting for dedicated luxury watch policies that offer worldwide coverage against theft and damage. Tontsch explains, “We offer three types of luxury watch insurance: classic item insurance, household contents insurance with all-risk coverage, and art private insurance for high-value households.” Each type is tailored to meet the specific needs of watch collectors, providing peace of mind in an increasingly risky environment.
The classic item insurance policy means that each watch is treated as an individual item and insured accordingly. “We specify the insured value, the purchase date and so on.” Each watch is assigned its own premium. These watches are then covered under an all-risks policy. This means they are insured against everything except what is explicitly excluded in the policy terms. “It includes falling, breakage, theft, trick theft, loss or other types of damage that we might not even imagine today. An example of something that is not covered would be if a pet damages or destroys the watch.”
