2005
(06/12/2005) AXA reports fall in business crime but urges vigilance over the Christmas period
- Theft and malicious damage account for 95% of all crime claims settled
- Arson accounts for 3% of crime claims but 24% of settlement costs
- Over half of SMEs cite yob culture as a root cause of crime against business
Despite the latest findings from the AXA Business Crime Index1 revealing a decrease of 17% in the number of crime related business insurance claims settled between July and September compared with the second quarter of 2005, the insurer is warning of a potential rise in business crime over the Christmas period. In the last three months of 2004 there was a 22% increase in the number of crimes settled compared to the previous three months and AXA is expecting a spike in claims again this year.
AXA believes that due to many premises being left empty over the Christmas period, businesses face an increased risk of criminal activity against them. However, it says that much of the crime committed against businesses could be prevented. Research conducted by the insurer has found that only 6 out of 10 businesses are satisfied with the security measures they currently have in place2. Furthermore, 6% of companies never review their security measures. AXA warns employers to review their security measures and take precautions to protect their staff and their property.
Neil Mercier, property insurance manager at AXA, said: "We are encouraged that the number of crime related claims has decreased but businesses cannot afford to become complacent, particularly over the Christmas period. At such a busy and stressful time, it's easy for security issues to be overlooked and experience tells us that businesses are more at risk than at other times of the year. Our website www.axa4business.co.uk offers free advice to businesses on a range of issues including how to protect themselves from criminal activity."
Quarter three findings from the British Crime Index
The Index, which is based on AXA's claims database, revealed that in the third quarter, the value of the average crime related business insurance settlement was £3,337 down from £3,743 in the previous three months. Criminal activity targeted towards employers accounted for over one in five (20.1%) of all business insurance claims settled by AXA in the period.
AXA's Business Crime Index indicates that the most frequent type of crime related claim settled is theft followed by malicious damage. Arson, though a relatively rare occurrence, accounts for nearly a quarter of the costs of all crime related insurance claims.
| Type of claim | % of all Crime Related Claims Made Q1 2005 (cost) | % of all Crime Related Claims Made Q1 2005 (numbers) |
|---|---|---|
| Arson | 24.39% | 3.90% |
| Forcible/Violent Entry/Exit | 0.71% | 0.48% |
| Goods in Transit | 0.00% | 0.00% |
| Malicious Damage | 15.05% | 32.05% |
| Money/Hold Up | 0.00% | 0.00% |
| Money (non-forcible) | 0.01% | 0.05% |
| Theft | 59.84% | 63.51% |
AXA conducted research amongst SMEs to establish what they feel are the root causes of business crime in their area. Over half feel that yob culture is to blame, while 50% cite the lack of police presence and security systems.2
| Cause of crime | Overall | London | Rest of South | Midlands & Wales | North | Scotland |
|---|---|---|---|---|---|---|
| Yob culture | 53% | 50% | 54% | 53% | 59% | 48% |
| Lack of police presence/security systems | 50% | 47% | 50% | 53% | 55% | 44% |
| Drugs | 44% | 38% | 42% | 41% | 59% | 50% |
| Binge Drinking | 31% | 29% | 32% | 32% | 32% | 39% |
| Poverty | 20% | 22% | 14% | 17% | 22% | 26% |
| High unemployment | 14% | 13% | 9% | 10% | 20% | 13% |
Professor Martin Gill, Perpetuity Research & Consultancy International, University of Leicester said: "The evidence here once again confirms that businesses feel that the police are not committed to tackling business crime, and that their security measures are inadequate. While business representative groups are tackling the former, businesses themselves need to consider their own security. Doing so may not be expensive, but AXA figures suggest that not taking any action can be very expensive and of course inconvenient and disruptive."
Commenting on the results of AXA's latest Business Crime Index, Steven Hill, Policy Adviser for the British Chambers of Commerce, said: "Businesses are likely to be more at risk of crime as Christmas approaches and it is vital that firms take steps to protect their property and reduce their chances of falling victim to crime. It is incumbent upon the police to play their part too. Yet our own research shows that the majority of employers feel that the police do not attach sufficient importance to tackling business crime. All police forces should be required to record business crime as a separate statistic so that the police fully understand the problem and implement measures to address it."
UK business crime by city
Nottingham remained at the top of the city business crime table, with 27.6% of claims settled between July and September being crime related. Nottingham is followed by Derby (26.3%) and Cardiff (26.3%). Edinburgh (13.4%) is the city with the lowest percentage of crime related business insurance claims settled over this period.
| City | % point Change Q2 2005 to Q3 2005 | % Claims resulting from crime Q3 2005 |
|---|---|---|
| Nottingham | -0.3% | 27.2% |
| Derby | -0.3% | 26.3% |
| Cardiff | 4.5% | 26.3% |
| Leicester | -1.8% | 23.0% |
| Manchester | 4.8% | 22.5% |
| Bradford | 3.8% | 21.9% |
| Bath | 0.6% | 21.7% |
| Birmingham | 3.8% | 21.5% |
| Norwich | -3.3% | 20.1% |
| Liverpool | -0.2% | 19.2% |
| Leeds | -4.0% | 18.3% |
| Bristol | -0.8% | 17.9% |
| Glasgow | 2.4% | 17.8% |
| Middlesbrough | 5.0% | 17.8% |
| London | 0.4% | 16.6% |
| Newcastle | -3.3% | 14.8% |
| Edinburgh | -2.4% | 13.4% |
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 http://www.axa4business.co.uk.
- Ends -Notes to Editors
1 The index is based on figures from AXA's own claims database. This release covers findings from July, August and September 2005.
2 Research conducted by YouGov between 5th and 9th September amongst 913 business managers and owners of companies with between 1 and 249 employees.
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