NCJ Number
127915
Date Published
1990
Length
208 pages
Annotation
This analysis of the relationship between insurance and crime focuses on residential burglary in England and Wales, considers why crime prevention is important to the insurance industry, and why and how insurance can be important for crime prevention.
Abstract
Research indicates that improved residential security may not reduce overall levels of burglary, but may help to make individual dwellings less vulnerable thereby benefiting insurers individually. In addition, the provision of insurance can represent a powerful way to offer financial incentives or disincentives for crime prevention measures. Therefore, insurers should use criminological research to guide their crime prevention activities. Insurance companies are also concerned about insurance fraud and the accompanying concept of "moral hazard." Some statistics indicate that insurance fraud related to residential burglary may be a major problem. In addition, insurance as currently operated can probably function only if insurance fraud does not become endemic. Thus, insurers try to detect fraud and pay only the proper amount of any claim. Finally, the disciplines of insurance and criminology can benefit both one another and crime prevention efforts. Tables, figures, and 167 references