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Personal finance

New System of Security Marking for Household Products Introduced

Strategic Insights

— 1 min read

Insurers have given a tentative welcome to a new system of security marking for household products, but the Association of British Insurers (ABI) remains skeptical about its effectiveness. The system, devised by Douglas McCartney of Nationwide Property Register (NPR), involves tagging expensive household goods with barcodes that can be registered on a national database. This will enable insurers to quickly identify stolen goods and prevent exaggerated claims.

Key Takeaways:

  • The new system of security marking involves tagging household goods with barcodes that can be registered on a national database.
  • The system was devised by Douglas McCartney of Nationwide Property Register (NPR) and is intended to simplify household theft claims.
  • The system will enable insurers to quickly identify stolen goods and prevent exaggerated claims by verifying the serial number of the item.
  • The ABI has expressed skepticism about the system's effectiveness, citing concerns that it will not stop fraudulent or exaggerated claims.
  • Burglars will find it impossible to remove the barcode strips without marking the goods because of the strength of the adhesive.
  • If they are removed, they will leave an ultraviolet trace.
  • The system will also help police when it comes to identifying stolen goods.
  • The tagging of the goods will be left to customers, with serial numbers randomly checked with manufacturers to ensure everything matches up.
  • The system is already being considered by General Accident and has been adopted by Strovers, a specialist insurer that develops and manages household policies.
  • The cost of the tags will be passed on to policyholders, with Strovers passing the £12 cost on to its customers.

Statistics:

  • A recent Metropolitan Police report showed theft of property worth £113,000 resulted in insurance claims totalling more than £1m.
  • The system is expected to simplify household theft claims and prevent exaggerated claims by enabling insurers to verify the serial number of the item.

Sources:

  • Suite 18, Queen Annes Mansions, Ramsgate, C20 1DU, March 1994
  • The Sunday Times, 1994
  • General Accident
  • Strovers

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