2006
(22/06/2006) Cost of individual cases of business crime up 6%
- However, total number and value of crime related business insurance claims falls
- Arson accounts for just 3.77% of business crime related insurance claims but 38% of settlements
- Birmingham tops the city business crime table
The latest findings of the AXA Business Crime Index, which are based on the company's own claims data1, show that the average cost of a crime related business insurance claim during the first three months of 2006 was £4,179. This is an increase of 6% on the last quarter of 2005 when the corresponding figure was £3,942.
However, between January and March 2006, the total number of crime related business insurance claims fell by 24% when compared to the last three months of 2005, and the total value of these claims fell by 23%. One of the key reasons for this decline is that during the Christmas period, crime against businesses can increase dramatically because many premises are closed for the festive season.
However, more encouragingly, when compared to the first three months of 2005, the total number of crime related business insurance claims between January and March 2006 fell by 6%.
Commenting on the results, Neil Mercer, property insurance manager at AXA said: "Although our figures show a decline in the number and total cost of business crime, this is still a serious problem that is costing small and medium sized businesses well over £700 million a year2.
"Many businesses need to take greater action to reduce the chances of becoming a victim of crime. Our website www.axa4business.co.uk contains a range of guides for SMEs including on how to protect themselves from criminal activity."
First quarter 2006 findings from the AXA Business Crime Index
Arson is the most financially crippling crime small businesses can face, and for the first three months of 2006 it accounted for 38% of the total value of settled business crime related insurance claims. This is despite the fact that it only makes up 3.77% of the total number of business crime related claims. Theft is the most common claim and accounts for the largest share of business crime related insurance settlements.
| Type of claim | % of all Crime Related Claims Settled Q1 2006 (cost) | % of all Crime Related Claims Made Q1 2006 (numbers) |
|---|---|---|
| Arson | 38.06% | 3.77% |
| Forcible/Violent Entry/Exit | 0.84% | 0.85% |
| Malicious Damage | 11.71% | 33.28% |
| Theft | 49.40% | 62.10% |
UK business crime by city
Birmingham tops the city business crime table, with 27.87% of claims settled between January and March being crime related. Birmingham is followed by Cardiff (26.82%) and Bradford (24.18%). Liverpool (12.83%) had the lowest percentage of crime related business insurance claims settled over the period.
| City | % point Change Q4 2005 to Q1 2006 | % Claims resulting from crime Q1 2006 |
|---|---|---|
| Birmingham | 5.55% | 27.87% |
| Cardiff | -0.15% | 26.82% |
| Bradford | -6.28% | 24.18% |
| Leicester | 2.80% | 23.53% |
| Derby | -7.27% | 23.46% |
| Leeds | 2.80% | 23.08% |
| Ipswich | -3.00% | 20.11% |
| Bath | -2.16% | 19.72% |
| Newcastle | 1.85% | 19.18% |
| Nottingham | -10.21% | 18.70% |
| Norwich | -1.27% | 18.49% |
| Manchester | -3.94% | 18.14% |
| Bristol | -0.02% | 18.13% |
| Middlesbrough | -7.80% | 17.20% |
| London | -0.73% | 15.88% |
| Edinburgh | -4.33% | 15.72% |
| Glasgow | -4.37% | 14.12% |
| Liverpool | -10.68% | 12.83% |
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 -
More information
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About AXA's Business Crime Index
1 The index is based on figures from AXA's own claims database. This release covers findings from January, February and March 2006.
2 The figures are based on AXA's claim payments in 2005, and its share of the SME population in the UK.
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 2005, had € 1,064 billion in assets under management. AXA reported total IFRS revenues of € 72 billion and IFRS underlying earnings of € 3,258 million for the full year 2005. Our previous company performance is not a guide to how we may perform in the future.
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