BTA Baltic Insurance Company (hereinafter – BTA) has analysed the current experience of cooperation with Latvian dealers of TrackGuard – a vehicle search and recovery system, and has come to a decision – to consider the TrackGuard system as insufficiently safe and effective vehicle search and recovery system for high risk class vehicles insured with BTA. BTA suggests the owners of cars of recent make and expensive cars, BTA customers, who have installed TrackGuard systems in their vehicles, reconsider the efficiency of sticking with this system.
With the number of stolen new and expensive cars on the rise, focus increases on preventive measures that would allow reducing the probability of a car being stolen and facilitate finding it in case the car is still gone. Insurance companies analyse the number of car thefts on a regular basis and, according to car brand, make and year of make of the stolen vehicles, define the vehicles to be included in the high-risk class. Additional safety requirements are defined for the owners of such vehicles with respect to vehicle equipment, so that the theft risk cover would be in effect when purchasing the motor own damage insurance (hereinafter – CASCO) policy. By now BTA has supported the use of vehicle search and recovery systems provided by a range of manufacturers; such a system functions in a way that a transmitter is installed in the vehicle, transmitting a RF signal thus enabling the vehicle location to be found. BTA’s analysis of its experience by now reveals that in none of the cases, when equipped by TrackGuard systems, vehicles were found.
Ivo Danče, Baltic Insurance Risks Underwriting Department Director of BTA Baltic Insurance Company: “By establishing additional safety requirements to high-risk class vehicles, our goal is to reduce the occurrence probability of the risk of theft. That is why we analyse the operation and maintenance quality of each such system, as well as its efficiency. If a vehicle has been equipped by an effective tracking system, this system functions properly and is properly maintained, which ensures that the alarm signal is received in active mode as well, meaning – at the moment when the client has not yet discovered that the car is missing, thus taking care that the search for the vehicle comes as a fast response to the theft, then the likelihood of theft is considerably reduced. And on the contrary, when a system cannot guarantee the aforementioned, as our experience tells us on cases when vehicles were equipped by TrackGuard systems, then we consider the use of such systems to be inefficient as they fall short of their purpose. Installing such a system is to none’s benefit, either the client, or the insurer. We care for the safety of our customers’ cars, therefore we have decided to deem TrackGuard system no longer an effective system matching our security requirements. We suggest every BTA customer, who has installed TrackGuard system in his vehicle, consider the efficiency of this system and the sense of using it.”
As announced by BTA some time ago, BTA has received a total of 36 CASCO insurance claims for stolen vehicles this year. During the years’ time since September 2014, BTA has received three claims reporting theft of a vehicle equipped by TrackGuard system: a 69 thousand euros worth Lexus 450H was stolen from a BTA customer in September 2014, another BTA customer thus parted from his BMW X3 of 2011 worth 33 thousand euros in November 2014, and quite recently – at the end of September 2015, a BTA customer got stolen a 2015 Mercedes Benz ML350 of nearly 54 thousand euros worth. Despite of the fact that TrackGuard system was installed on these cars, none of these cars was found.
BTA would like you to pay attention that as of 1 November this year, TrackGuard system will not be considered relevant and matching BTA’s security requirements for high-risk class vehicles. Installing this system will not be advised to BTA customers. To take best care of the safety of our customers’ cars, which have already been equipped by TrackGuard systems, BTA is going to contact each of the customers and offer individualized extra security solutions on good terms.
The insurance company BTA was founded in 1993, under its initial name JSC Baltijas Transporta insurancea (Baltic Transport Insurance). During its initial operation in the sector of sea and air freight insurance, BTA soon proved itself as a universal insurance company which is able to offer the widest range of insurance services to its clients. Since year 2002, which is when BTA acquired the Lithuanian insurance company BTA Draudimas, BTA has been conducted targeted business also in other countries, such as Estonia, Germany, Spain, Poland, France, Italy, the United Kingdom. Initially, its fundamental principle of operation was Freedom of Services (FOS), whereas affiliates were established later on.
To enjoy the benefits offered by the European Union and facilitate business abroad, BTA became a European business in February 2011 and acquired its new name BTA Insurance Company SE.
BTA is the only Latvian insurance company which exports financial services and operates not only in the Baltic States. The international growth of BTA is proven by the TOP 500 of Central European Companies issued by the international auditor company Deloitte for year 2013, where BTA ranks 50th among the largest insurance companies in Central Europe.
To facilitate more dynamic development of its business in Europe and structure its administrative resources and processes in line with the strategic lines of its business operations, the insurance company BTA Insurance Company SE launched a reorganisation plan in October 2014 to divide the company according to the geographical distribution of its business operations: Baltics and rest of Europe. As part of the reorganisation, the BTA subsidiary, AAS BTA Baltic Insurance Company was founded on 27 October 2014. Having completed the reorganisation and retained the current service portfolio, insurance services in Latvia, Lithuania, and Estonia are, starting from 1 July 2015, being offered by AAS BTA Baltic Insurance Company, whereas BTA Insurance Company SE continues market expansion in other European states.
Information prepared by:
Public Relations Manager
AAS BTA Baltic Insurance Company
Phone: +371 67025661, mobile: +371 27828796