Business Crime Increases By 15% In Third Quarter

6th December 2006

AXA Business Crime Index reports second consecutive quarterly increase in business crime

· Birmingham tops the city business crime table

· The average claim settlement amount is £3,524

· Over 50% of business crimes relate to theft, while arson claims highest payouts

· AXA warns businesses to be vigilant over the Christmas period

The latest findings from the AXA Business Crime Index* reveal a 15% increase in crime related insurance claims by businesses between July and September, compared to the second quarter of this year. The last six months have seen a consistent rise in the number of business crime claims experienced by the insurer. The company warns with Christmas fast approaching, there could be further increases in the level of business crime.

Commenting on the findings of the AXA Business Crime Index, Neil Mercier, property insurance manager at AXA said: "We are concerned by the findings from this index, as criminal activity towards businesses continues to rise. It is particularly troubling as our experience since the index was first launched reveals business crime generally increases in the fourth quarter of the year, which will make worrying reading for UK businesses this festive season. We believe a contributing factor is the impact of Christmas, when many retailers find their stores busier and more difficult to protect from crime, while the general distraction and goodwill of the festive period can lead to a lowered guard against criminal behaviour.

"With many premises left empty over the period, businesses make easier targets than usual. We are urging businesses to remain vigilant against criminal activity and ensure they have adequate measures in place to protect themselves. Our website www.axa4business.co.uk contains a range of guides for SMEs including on how to protect themselves from criminal activity."

Quarter three 2006 findings from the AXA Business Crime Index
Claims related to theft are the most prevalent by businesses in the last quarter accounting for over half of all crime claims followed by malicious damage, which accounts for over one-third (36.1%). While arson accounts for only around 5% of claims, it accounts for around £4 in every £10 the insurer paid out in crime related insurance claims during this period. Across all crimes, the average insurance settlement amount was £3,524.

UK business crime by city
Birmingham tops the city business crime table this quarter, with 24.42% of claims settled between July and September resulting from criminal activity. Middlesbrough (23.89%), and Cardiff (23.42%) are second and third respectively. Ipswich experienced a 7.86% decrease in the proportion of crime related business insurance claims, moving it to the bottom of the crime table.