Insurance News

The effects of the pandemic have been far reaching for individuals and business owners.

New and emerging risks and insurance trends in 2021

April 2021

The effects of the global pandemic have been far reaching, with unexpected consequences for individuals and business owners.

Here are just some of the emerging risks and threats that have arisen within the insurance sector over the last 12 months.

Hot tub and garden accessory related claims

Last year, we saw a surge in hot tub installation, as the UK population were required to find new ways to spend their leisure time at home. 

Due to lockdown restrictions, many households found they had leftover disposable income and a calendar free of any social commitments or travel plans.

As hot tub sales increased over this period, so too did the number of accidents and incidents happening at home, leading to the tripling of home insurance claims involving hot tubs last summer. 

With an annual increase of 188% in relation to accidental damage claims, the value of claims vary from hundreds to more than £9,000.

In addition, claims for items dropped in or off hot tubs has also increased by 213%, with mobile phones being top of this list. There has also been a small number of claims for theft, with many cases having deflated spas stolen from people’s homes.  

Bike thefts

Bike thefts have surged by 66% during the coronavirus pandemic compared to the preceding year, most notably in the capital, following a spike in bike sales.

Pedal bike related thefts accounted for 32% of all theft claims, compared to 14% the previous year.

South West London was notably the number one hotspot for bike related thefts, whilst other parts of the UK reporting higher figures included Edinburgh, Bristol and Southampton. 

Cyber related crimes 

Over the last year we have seen a surge in cyber-attacks targeting critical infrastructures, governments, organisations and end-users, most notably influenced by governmental announcements.

These techniques, while common, had never been observed in relation to an event of this magnitude, making this a unique trend that is expected to stick around in 2021. 

The most notable pattern seen is that government announcements may actually accelerate cyber-crime, with fraudsters utilising pandemic related announcements and public information as bait to catch unsuspecting victims.

The increased uncertainty and anxiety created by the pandemic has also increased the likelihood of these attacks and crimes being successful, with warnings to the government, media and public to be cautious and aware as these coronavirus related announcements can give leverage to attackers.

Talk to your usual Baxters contact about our comprehensive range of policies for individuals and businesses.