North American initiative tackles CROSS-BORDER AUTO THEFT

The North American Export Committee (NAEC), formed to combat cross-border movement of stolen vehicles in North America, recently met in Jacksonville, Florida. Canadian and U.S. insurers, customs officials, law enforcement agencies such as the FBI, RCMP and port authorities, came together with auto manufacturers to deal with what is clearly becoming a growing thorn in the foot for the property and casualty insurance industry.

November 30, 1999 | Last updated on October 1, 2024
2 min read

Although the recent NAEC discussions cleared the air on many of the complexities facing the multiple parties engaged in the North American battle against international auto theft, it became clear from the meeting that the task ahead will be no small skirmish.

At a recent media conference organized by the VICC, the Insurance Crime Prevention Bureau (ICPB) and the Insurance Bureau of Canada (IBC), the vice president of marketing of the ICPB, Ron Giblin, drew attention to the extent of auto theft in North America. Referring to a London Times newspaper article stating that 480,000 vehicles in Russia are currently of stolen North American origin, Giblin says the battle to expatriate stolen vehicles is staggering, “but the key for us is to stop the cars before they leave our shores”.

Giblin, who chairs NAEC, notes that the organization’s membership is rapidly expanding to include ancillary stakeholders such as auto rental companies. Increased and broader cooperation will result in a more effective front to auto theft, he states. However, he notes that non-recovery of stolen vehicles is continuing to rise. “There are 200,000 cars not recovered yearly in the U.S. with a 33% non-recovery rate. In Canada, 28% of cars are not recovered. With free trade providing freer flow of cargo across North America, stolen cars are more easily being transported cross border to be exported offshore.”

Cooperation between the ICPB and its U.S. counterpart, the National Insurance Crime Prevention Bureau, has been promising, he reports. The organizations have been recording information of all exported vehicles at a number of North American ports and are exchanging the information four times daily. While the information exchange will not immediately recover vehicles, Giblin concedes, “it will at least record information for the organizations to do subsequent investigation”.

New technology

At the NAEC meeting, Giblin reports, stakeholders discussed the emerging use of gamma ray technology to scan cargo entering ports to determine whether a vehicle is being smuggled through port gates. The technology is currently only being used in Miami. “700,000 containers a year flow through Miami’s port but now that the authorities are scanning all containers, they’ve seen less stolen cars flow through. Exporters are recognizing Miami as too hot a spot and are exporting their vehicles elsewhere.” Still, at a reported startup cost of US $275,000 a year, the exorbitant price tag will prohibit the implementation of this technology at every port, Giblin admits. Discussion of increased use of gamma ray technology, along with focus on tougher legislation will be a priority at the next NAEC meeting scheduled in April, 2000 in Toronto, he says.