2005
(30/06/2005) UK businesses continue to suffer at the hands of criminals - AXA reveals cost of crime to businesses up by 29%
- Average cost of business crime is £4,708
- Most common crimes are theft and malicious damage
- Arson losses on the increase
- Nottingham is city hardest hit by business crime
The cost of crime to businesses increased dramatically over the first quarter of 2005 according to the latest findings from AXA's Business Crime Index1. The latest findings from the index, which is based on AXA's own claims database, shows the average settlement amount for a crime related insurance claim rose by a staggering 29.2% from £3,643 between October and December 2004 to £4,708 for the first three months of 2005. By comparison, the average cost of a non-crime related settlement rose by just 2.3% in the same period.
The vast majority (95%) of crime related claims by businesses are so called 'petty' crimes of theft and malicious damage, for example: graffiti or smashed windows.
Arson losses on the increase - potentially devastating for small businesses
However, the research suggests the cost of such anti-social behaviour is becoming an increasing burden to the business community. Arson, whilst a rare occurrence, remains the most expensive type of criminal business insurance claim, with instances running into hundreds of thousands of pounds. Though arson accounted for less than 3% of crime related business claims settled between January and March 2005, it was responsible for well over one-third of the total value of settlements. With a long hot summer predicted, businesses need to be more vigilant as this is the type of claims that could wipe a business out!
| Type of claim | % of all Crime Related Claims Made Q1 2005 (cost) | % of all Crime Related Claims Made Q1 2005 (numbers) |
|---|---|---|
| Arson | 38.49% | 2.82% |
| Forcible/Violent Entry/Exit | 0.42% | 0.39% |
| Goods in Transit | 0.01% | 0.06% |
| Malicious Damage | 15.34% | 25.61% |
| Money/Hold Up | 0.02% | 0.14% |
| Money (non-forcible) | 0.08% | 0.41% |
| Theft | 45.64% | 70.57% |
Neil Mercier, property insurance manager at AXA, said: "These findings confirm what we have experienced with our business customers; namely, that criminal activity against businesses is widespread and costly. It's essential that they take measures to protect themselves against the threat; not just by having adequate insurance cover, but by looking at the risks their business faces and finding practical solutions to safeguard their staff, property and other assets."
Steven Hill, policy adviser at the British Chambers of Commerce, said: "These figures show that crime continues to plague firms across the UK. Businesses require more support from the police and local authorities in tackling the issue, but there are also a number of relatively simple steps that they can take themselves to combat crime. These range from ensuring that all doors and windows are secure to installing an alarm system."
UK business crime by city
Nottingham (25%) remains at the top of the business city crime table for the third consecutive quarter despite a fall in the percentage of claim settlements resulting from criminal activity compared to the previous quarter. Bath (24.7%) and Ipswich (24.3%) both experienced rises in the percentage of crime claims settled and are second and third in the table respectively.
Businesses in Newcastle should be cheered to hear they are in the city with the smallest percentage of claims resulting from criminal activity; just 12.2% compared with the national average of 18.3%.
| City | % of all claims in the area which are a result of criminal activity | % Change Q4 2004 to Q1 2005 |
|---|---|---|
| Nottingham | 25.0% | -7.1% |
| Bath | 24.7% | 8.0% |
| Ipswich | 24.3% | 9.7% |
| Leicester | 22.6% | 3.2% |
| Bradford | 21.6% | -19.2% |
| Derby | 21.4% | 2.3% |
| Leeds | 20.9% | -16.3% |
| Birmingham | 20.1% | -2.9% |
| Norwich | 19.4% | -14.0% |
| Manchester | 19.2% | -4.5% |
| London | 17.7% | -0.7% |
| Glasgow | 17.5% | 2.9% |
| Cardiff | 16.5% | -18.4% |
| Edinburgh | 15.9% | -15.2% |
| Middlesbrough | 15.6% | 11.7% |
| Liverpool | 14.2% | -35.7% |
| Bristol | 13.2% | -18.0% |
| Newcastle | 12.2% | -17.5% |
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 January, February and March 2005.
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