2005
(08/03/05) Crime continues to threaten UK business. AXA reveals business crime is up by 22%
- Average cost of business crime is £3,643
- Businesses demand tougher penalties for criminals that target them
Criminal activity against businesses has increased dramatically according to the latest findings from AXA's Business Crime Index1. The index, which is based on AXA's own claims database, shows the number of claims settled as a result of criminal activity in the last quarter of 2004 rose by over 22% (22.76%) compared to the previous quarter. During the last three months of 2004, the average crime related business claim settlement was £3,643.
Response from the business community
This increase in business related crime has resulted in growing calls for tougher penalties for criminals. AXA's research2 reveals that 58% of businesses believe that the impact and seriousness of business crime is generally overlooked, and that there should be a greater focus on tackling this problem from both the Government and Police.
AXA research reveals that 62% of businesses believe that there are not enough Police on the streets. In terms of the penalties used to punish criminals, the business community would like to see the following changes:
- 23% want community service sentences to be lengthened
- 32% would like to see tougher financial penalties
- 46% want longer custodial sentences
- 29% want to see more custodial sentences awarded
Types of crime that affect UK businesses
Businesses are most likely to be victims of theft or malicious damage. These two crimes accounted for over 95% of the crime related settlements handled by AXA Insurance in the last quarter of 2004. The most expensive criminal business insurance claim is arson, with some instances costing hundreds of thousands of pounds. Whilst arson attacks remain rare, accounting for 3% of all crime related incidences settled, they account for over one-third of the total settlement amount.
| Type of claim | % of all Crime Related Claims Made Q4 2004 (cost) | % of all Crime Related Claims Made Q4 2004 (numbers) |
|---|---|---|
| Arson | 33.59% | 3.19% |
| Forcible/Violent Entry/Exit | 0.42% | 0.42% |
| Goods in Transit | 0.04% | 0.14% |
| Malicious Damage | 16.71% | 28.96% |
| Money/Hold Up | 0.01% | 0.02% |
| Money (non-forcible) | 0.20% | 0.32% |
| Theft | 49.03% | 66.95% |
Neil Mercier, property insurance manager at AXA, said: "We have seen a sharp increase in the number of claims settled at the end of last year; one of the reasons for this could be because many business premises shut-down over the Christmas period making them easier targets.
"However, business owners must remain vigilant at all times and take precautions to safeguard their premises and employees. Our website www.axa4business.co.uk offers free advice to businesses on a range of issues including how to protect themselves from criminal activity".
Professor Martin Gill, Perpetuity Research & Consultancy International, Leicester University said: "Despite evidence that the public think that sanctions should be more punitive it is clear that businesses need to do more to help themselves. Proper risk assessments are key, malicious damage is common but not so costly, arson is rare but very expensive and inconvenient, they need appropriate but mostly different responses and businesses need to recognise that problems can be tackled by focussed and co-ordinated action. The AXA figures remind us that crime regularly and directly impacts the business sector".
Commenting on the results of AXA's latest Business Crime Index, David Frost, Director General of the British Chambers of Commerce, said: "Crime remains a very real problem for businesses the length and breadth of the country. Business crime is not a 'victimless' crime; it undermines staff morale and distracts employers from the essential task of running their business. Our members tell us that a faster police response would be the most effective way of reducing business crime. It is time that all police forces were required to record incidences of business crime so that their performance in tackling the issue can be properly measured".
UK business crime by city
Nottingham experienced a small increase in the percentage of claims resulting from crime in Q4, and remains at the top of the business city crime table. 26.9% of all AXA business claims settled in that city during the last three months of 2004 were crime related. Nottingham is followed by Bradford (26.7%), Leeds (25%) and Bath (22.9%).
Middlesbrough remains the city with the lowest percentage of crime related business insurance claims settled over this period.
| City | % of all claims in the area which are a result of criminal activity | % Change Q3 2004 to Q4 2004 |
|---|---|---|
| Nottingham | 26.9% | 0.2% |
| Bradford | 26.7% | 33.6% |
| Leeds | 25.0% | 9.2% |
| Bath | 22.9% | 6.7% |
| Norwich | 22.5% | 8.9% |
| Ipswich | 22.1% | 46.7% |
| Liverpool | 22.1% | 58.2% |
| Leicester | 21.9% | 23.0% |
| Derby | 20.9% | 2.6% |
| Birmingham | 20.7% | -5.7% |
| Cardiff | 20.3% | 8.6% |
| Manchester | 20.1% | 27.0% |
| Edinburgh | 18.7% | -3.2% |
| London | 17.8% | -12.8% |
| Glasgow | 17.0% | -10.4% |
| Bristol | 16.1% | -19.0% |
| Newcastle | 14.8% | 11.6% |
| Middlesbrough | 14.0% | 8.4% |
AXA offers a free crime prevention toolkit designed to help businesses protect themselves against criminal activity. The AXA Business Security Blueprint provides best practice advice on everything from securing windows and doors to CCTV and fire suppression systems. It can be downloaded free of charge from www.axa4business.co.uk.
- Ends -
About AXA's Business Crime Index
1The index is based on figures from AXA's own claims database. This release covers findings from October, November and December 2004.
2Market research company Coleman Parkes conducted 543 telephone interviews amongst operations, administration, financial and HR directors at businesses with between 50 and 250 employees. Interviews took place throughout February 2005
More information
If you are a journalist and require further information contact one of our media team
About AXA
AXA is a world leader in financial protection. AXA's operations are diverse with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 120,000 staff and tied agents and, as of 31 December 2004, had €869 billion in assets under management. Reported total revenues for 2004 were approximately €72 billion. Our previous company performance is not a guide to how we may perform in the future.
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