A new batch of loss statistics indicates that accidental damagecontinues to be the primary cause of loss for insurancecompanies.

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The study, conducted by Safeware Insurance Agency, is based onan analysis of all computer and portable electronics claims paid in2006 and 2007.

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According to the analysis, accidental damage accounted for 58.8percent of all claims paid in 2007. Theft is the No. 2 cause ofloss with 18.7 percent of all claims paid. The study reported anoverall 29 percent increase in theft claims from 2006 to 2007. Theincrease is due in large part to the growing use of laptops andportable electronics in the classroom and among businessprofessionals. Safeware classifies this segment of their businessas 'Fleet' policyholders, a demographic that includes largebusinesses, colleges, universities, and primary and secondaryschools. This group had a 32 percent increase in theft occurrencesin 2007 over the prior year.

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Accidental damage claims were also up from 2006 to 2007. Theloss study revealed an overall 12 percent increase in accidentaldamage claims paid from the prior year. Again, the Fleet segment ofpolicyholders reflected the largest increase with accidental damagelosses climbing by 23 percent.

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Safeware's loss study also included data through Q2 of 2008.While the upward trend of accidental damage has continued into2008, Safeware projects theft losses to increase by nearly 300percent by the end of the year based on the claims reported throughQ2.

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The following is a breakdown of the types of loss and thepercentage change when compared to prior year losses:

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2006 to 2007

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Type of Loss percent Change Accidental Damage + 12 percent Theft+ 29 percent Liquid Damage - 32 percent

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2007 to 2008 Projected

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Type of Loss percent Change

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Accidental Damage + 16 percent

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Theft + 278 percent

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Liquid Damage + 58 percent

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For more information, visit Safeware's website.

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