AXA reports 20% rise in UK business crime

The frequency of crime-related insurance claim settlements in the second quarter of 2004 increased by a staggering 19.3% compared to the previous quarter. Around one-in-five of all business claims settled between April and June this year were the direct result of crime. These are the latest findings unveiled by the AXA Business Crime Index.

Despite the increase in crime, the index shows a 4% reduction in the collective cost of crime on the previous quarter. The average cost per settlement is now £3,384, down from £4,210 in the first three months of the year. However, this is still higher than the figure for the same period in 2003 of £2,852.

Theft remains the major type of crime committed against business, accounting for just under two-thirds of all business-related crimes. Malicious damage has seen a dramatic increase in frequency, now accounting for over 30% of all crime committed against businesses. Although violent crime against companies remains something of a rarity, accounting for less than 1% of all crime-related claims settled, there has been a worrying rise in arson, forcible and/or violent entry to premises, malicious damage and money snatching.

Commenting on the Business Crime Index findings, Neil Mercier – property insurance manager at AXA – told SMT: “While crime against employees is relatively rare, the impact of crime on businesses can be disruptive and costly. Business owners need to be vigilant and thorough in their security precautions. There are many simple, cost-effective measures which can be taken to make businesses more secure against criminals and help in reducing insurance premiums.”

The AXA Business Crime Index reveals that local businesses in Bradford are particularly at risk, with just under 30% of all claims settled between April and June resulting from criminal activity – the highest proportion of any major city in the UK. Bradford is followed by Birmingham (27.1%), Nottingham (25%) and Bath (24.7%). Liverpool (14.9%), Ipswich (15.8%) and Glasgow (15.8%) were found to have the lowest percentage of crime-related business insurance claims during this period. London stands at 19.8%.