A new batch of loss statistics indicates that accidental damage continues to be the primary cause of loss for insurance companies.
The study, conducted by Safeware Insurance Agency, is based on an analysis of all computer and portable electronics claims paid in 2006 and 2007.
According to the analysis, accidental damage accounted for 58.8 percent of all claims paid in 2007. Theft is the No. 2 cause of loss with 18.7 percent of all claims paid. The study reported an overall 29 percent increase in theft claims from 2006 to 2007. The increase is due in large part to the growing use of laptops and portable electronics in the classroom and among business professionals. Safeware classifies this segment of their business as 'Fleet' policyholders, a demographic that includes large businesses, colleges, universities, and primary and secondary schools. This group had a 32 percent increase in theft occurrences in 2007 over the prior year.
Accidental damage claims were also up from 2006 to 2007. The loss study revealed an overall 12 percent increase in accidental damage claims paid from the prior year. Again, the Fleet segment of policyholders reflected the largest increase with accidental damage losses climbing by 23 percent.
Safeware's loss study also included data through Q2 of 2008. While the upward trend of accidental damage has continued into 2008, Safeware projects theft losses to increase by nearly 300 percent by the end of the year based on the claims reported through Q2.
The following is a breakdown of the types of loss and the percentage change when compared to prior year losses:
2006 to 2007
Type of Loss percent Change Accidental Damage + 12 percent Theft + 29 percent Liquid Damage - 32 percent
2007 to 2008 Projected
Type of Loss percent Change
Accidental Damage + 16 percent
Theft + 278 percent
Liquid Damage + 58 percent
For more information, visit Safeware's website.
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