2005
(21/09/2005) AXA identifies dramatic increase in crime related business insurance pay-outs
- The number of crime related business insurance setlements is up by 24%
- Nottingham remains city most at risk from business crime
- 50% businesses believe lack of police presence and security systems to be root cause of crime that affects them
The latest findings from the AXA Business Crime Index1 has revealed an increase of 24% in the number of crime related business insurance claims settled during the second quarter of 2005 when compared to the first three months of this year. The Index, which is based on AXA's claims database, revealed that between April and June, the value of the average crime related business insurance settlement was £3,743.
According to AXA research2, half of all employers claim that one of the main reasons why there is so much criminal activity against businesses is that there is a lack of police presence as well as security systems such as CCTV. Overall, 59% of businesses think that their local authorities could do more to protect them from crime.
The extent of the problem
Criminal activity targeted towards employers accounts for nearly one in five (18.8%) of all business insurance claims settled by AXA. This is not surprising given that as many as three out of four retailers and half of manufacturers could experience at least one criminal act during the course of a year3.
AXA's Business Crime Index indicates that the most frequent type of crime related claim settled is theft followed by malicious damage. Violent crime represents a very small number of claims in the Business Crime Index as few incidences result in financial loss. However, the insurer says that this underestimates the true scale of the problem because up to one in four retailers could experience violent criminal activity over the course of a year3.
| Type of claim | % of all Crime Related Claims Settled Q2 2005 (cost) | % of all Crime Related Claims Made Q2 2005 (numbers) |
|---|---|---|
| Arson | 45.11% | 3.05% |
| Forcible/Violent Entry/Exit | 0.59% | 0.29% |
| Goods in Transit | 0.02% | 0.09% |
| Malicious Damage | 13.50% | 31.52% |
| Money/Hold Up | 0.03% | 0.11% |
| Money (non-forcible) | 0.08% | 0.47% |
| Theft | 40.67% | 64.47% |
Neil Mercier, property insurance manager at AXA, said: "These results highlight how serious and prevalent the threat of criminal activity is for businesses. Employers must remain vigilant at all times and take precautions to minimise the risks to their premises and employees. Our website http://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: "It is striking to find that victims lament the lack of police interest in business crime, this is common. However, it is not likely to change. While there are some excellent schemes helping businesses, especially in some city centres, business crime remains a low police priority. This AXA finding contributes to the growing body of knowledge which says that businesses need to ensure they implement the right security, not just any security, and that they come together to help each other in the fight against crime."
Commenting on the results of AXA's latest Business Crime Index, Steven Hill, Policy Adviser for the British Chambers of Commerce, said: "These findings highlight that crime remains an on-going problem for British firms. BCC will continue to call for all police forces to record business crime as a separate statistic. This will ensure that the problem is properly measured and should spur more forces to take action to address the issue. Business should also play its part by ensuring that simple steps are taken to reduce the risk of crime - such as securing all doors and windows."
UK business crime by city
Nottingham experienced a near 10 per cent increase in the percentage of claims resulting from crime in Q2, and remains at the top of the city business crime table. 27.5% of all AXA business claims settled in that city during the last three months of 2004 were crime related. Nottingham is followed by Derby (26.6%), Leicester (24.7%) and Norwich (23.4%).
Middlesbrough (12.8%) remains the city with the lowest percentage of crime related business insurance claims settled over this period.
| City | % Change Q1 2005 to Q2 2005 | % Claims resulting from crime Q2 2005 |
|---|---|---|
| Nottingham | 9.8% | 27.46% |
| Derby | 24.1% | 26.60% |
| Leicester | 9.4% | 24.72% |
| Norwich | 20.6% | 23.40% |
| Leeds | 6.6% | 22.32% |
| Ipswich | -8.2% | 22.27% |
| Cardiff | 32.0% | 21.80% |
| Bath | -14.5% | 21.10% |
| Liverpool | 36.2% | 19.35% |
| Bristol | 42.4% | 18.75% |
| Bradford | -15.8% | 18.18% |
| Newcastle | 47.9% | 18.02% |
| Manchester | -7.6% | 17.75% |
| Birmingham | -12.2% | 17.69% |
| London | -8.9% | 16.14% |
| Edinburgh | -0.3% | 15.83% |
| Glasgow | -12.1% | 15.42% |
| Middlesbrough | -18.2% | 12.78% |
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 April, May and June 2005.
2Research conducted by YouGov between 5th and 9th September amongst 913 business managers and owners of companies with between 1 and 249 employees
3Source: Home Office Online Report 37/05, "Crime against retail and manufacturing premises: findings from the 2002 Commercial Victimisation Survey".
More information
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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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