AXA - Be Life Confident

• Majority of retailers think business crime is overlooked by authorities
• Over 60% say that there aren't enough police on the streets
• If police presence is improved one in five believe it won't make a difference
• 42% of retailers want longer custodial sentences handed out

The Government and Police authorities are not doing enough to protect retailers from the threat of criminal activity according to a recent study amongst small to medium sized businesses in the sector. Research¹, conducted by the insurer, AXA, reveals that 58% of shop owner/managers believe that the impact and seriousness of business crime is overlooked by the authorities.

When questioned about policing levels, a substantial 64% of retailers felt that there were not enough police on the streets. A further 21% believe that even if there was a greater police presence it still wouldn’t make any difference to business crime in their area. Worryingly only one in six retailers considers their local policing to be adequate.

"Another problem for retailers is that even when they catch criminals, the police are unable to respond properly due to over-stretch and the fact that they are focused on domestic crime. Where arrests are made, offenders are often not punished beyond cautions or minor fines due to strain on the courts and the wider criminal justice system," said Nick James, crime policy officer for the British Retail Consortium.

So if UK retailers don't think that more police is the answer in helping to prevent business crime, what do they think will work? Unsurprisingly most retail businesses are calling for tougher justice to deter criminals that habitually target them. 42% of retailers want longer custodial sentences to be handed out and 30% want much tougher financial penalties. A further 24% want to see more custodial sentences passed and 18% want longer term community service.

Research conducted into AXA's own claims database² - the AXA Business Crime Index - reveals the extent of the problem facing businesses in the UK. Approximately one in five of all business insurance claims settled in 2004 were the result of criminal activity. In the last quarter of 2004 alone the number of crime claims settled on behalf of businesses increased by 23% compared to the previous three months. The data shows that businesses are most likely to be victims of theft or malicious damage. These two crimes accounted for over 95% of all the crime related settlements.

Despite some negative feeling within the retail sector, the Government does seem to be 'waking up' to the problem and has launched new initiatives such as the National Retail Crime Strategy and Action Against Business Crime. But the responsibility of tackling increased levels of business crime is not down to the authorities alone. Retailers need to be more proactive in securing their assets against the threat of crime. This involves a thorough assessment and increased awareness of the possible risks their business faces and the implementation of a relevant solution.

David Williams, claims director at AXA, comments on the findings: "This research clearly shows that retailers are feeling exposed and threatened by business crime. But on a positive note - it is encouraging that the issue of business crime is starting to gain a higher profile. This is primarily due to fact that industry, the Government and the organisations that represent UK business are starting to put their heads together and share data on business crime. An overriding view is that retailers also need to help themselves.

"And when it comes to security measures, spending a lot of money on equipment may not be the right thing to do - whereas walking round the shop premises and thinking what you would do in a criminal's shoes can be insightful. A retailer may find that they don't need CCTV but do require a stronger front door instead."

AXA's website, www.axa4business.co.uk, contains free advice to help businesses in this process.

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