2007
(14/03/2007) Business crime increases by a fifth in the last year
- AXA Business Crime Index reports 20% increase in number of crime related business insurance claims in 2006
- Glasgow revealed as arson capital of the United Kingdom
- Leicester tops league table for business theft
- Business crime claims increase for third consecutive quarter
The latest findings from the AXA Business Crime Index* show a 20% increase in the number of crime related insurance claims made by companies in 2006, compared with the 2005’s figures. Business crime claims increased by 6% in the last quarter of 2006 compared with the previous three month period. The Index, which is based on AXA’s own data, also reveals that over the same period the number of claims for violent and forced entries more than doubled, while arson claims soared by a fifth (20%). However, incidences of malicious damage including vandalism and graffiti; fell by 2% over the last quarter of 2006. Arson is an increasingly expensive problem for businesses; based on the amount paid out to victims it accounted for over half (51%) of all claims made.
Violent and forced entry claims in the last quarter of 2006 increased exponentially, more than doubling compared to the previous three months. AXA is warning businesses to urgently review their security provision given this sudden and dramatic increase. The average claim settlement amount for a case of violent or forcible entry was approximately £3,975, but the cost is far higher in terms of the traumatic psychological impact on employees, managers and business owners.
Commenting on the findings of the AXA Business Crime Index, Neil Mercier, property insurance manager at AXA said: “We are extremely concerned that business crime rates across the UK continue to rise. For the first time since the inception of the Index we have seen business crime increase for three consecutive quarters. AXA is campaigning for extra resources to be devoted to tackling the scourge of business crime.”
“We are concerned that while crime against individuals continues to generate significant column inches, public awareness of business crime remains low. We want to increase awareness of this problem; highlighting the millions of pounds it costs SMEs in lost assets, productivity and business disruption.”
Quarter four 2006 findings from the AXA Business Crime Index
Claims related to theft are the most prevalent in the last quarter of 2006 accounting for one in ten (11.4%) of all business insurance claims in the period, followed by malicious damage, which accounts for 6.3%. While arson accounts for only around 1% of claims by volume, it accounts for more than £5 in every £10 the insurer paid out in crime related insurance claims during this period. Across all crimes, the average insurance settlement amount is now £5,191.
| Type of claim | % of all Crime Related Claims Settled Q4 2006 (cost) | % of all Crime Related Claims Settled Q4 2006 (numbers) |
|---|---|---|
| Arson | 50.69% | 5.57% |
| Forcible/Violent Entry/Exit | 0.68% | 0.89% |
| Malicious Damage | 10.51% | 33.4% |
| Theft | 38.11% | 60.14% |
Source: AXA Business Crime Index
UK business crime by city
Leicester tops the city business crime table this quarter, with 27% of claims settled between October and December resulting from criminal activity. Nottingham (26.29%) and Cardiff (24.71%) are second and third respectively. Norwich experienced a 4.21% decrease in the proportion of crime related business insurance claims, moving it to the bottom of the crime table.
| Rank | City | % Claims resulting from crime Q4 2006 | % Claims resulting from crime Q4 2006 |
|---|---|---|---|
| 1 | Leicester | 7.32% | 27.00% |
| 2 | Cardiff | 2.87% | 26.29% |
| 3 | Nottingham | 4.21% | 24.71% |
| 4 | Birmingham | -0.92% | 23.50% |
| 5 | Derby | -0.24% | 22.79% |
| 6 | Liverpool | -0.44% | 22.73% |
| 7 | Manchester | 2.33% | 22.19% |
| 8 | Glasgow | -0.65% | 21.48% |
| 9 | Leeds | 2.06% | 20.94% |
| 10 | Bradford | -1.54% | 20.92% |
| 11 | Ipswich | 6.84% | 20.45% |
| 12 | Newcastle | 0.60% | 18.82% |
| 13 | Middlesbrough | -6.30% | 17.59% |
| 14 | Bristol | -1.69% | 17.28% |
| 15 | Bath | -0.35% | 16.67% |
| 16 | Edinburgh | -4.93% | 14.36% |
| 17 | London | -1.34% | 13.98% |
| 18 | Norwich | -4.21% | 9.42% |
Source: AXA Business Insurance
Scotland is a hotbed for malicious damage against businesses. Glasgow is the arson capital of the United Kingdom , with 10.6% of all claims settled in the city between October and December 2006 resulting from this crime, more than twice the national average (4.7%). Edinburgh leads the UK in malicious damage claims as a percentage of business insurance settlements, with 55% of all claims in the city attributable to this crime in 2006.
Leicester was the theft capital of Britain with a staggering 70.6% of all crime related business insurance claims in the city attributable to theft. Nottingham followed closely behind with 70% and Newcastle with 68.6%.
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
*The index is based on figures from AXA's own claims database. This release covers findings from October, November and December 2006.
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About AXA
AXA UK is a part of the AXA Group. 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 June 30 2006, had €1,091 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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