Business crime cost 721 million in 2005

Crime related business claims increased by a massive 27% in Q4 2005

Theft and malicious damage account for 95% of all crime claims settled

Arson accounts for 5% of crime claims but 42% of settlement costs

New research from AXA Insurance reveals that in 2005 the cost of crimes against British small and medium sized businesses (SMEs) was at least 721,637,653*. However, AXA believes that the ëtrueí cost of business crime is much higher as many offences will not be claimed for. In addition many more SMEs are either not insured at all or have inadequate cover. The latest findings of the AXA Business Crime Index, which are based on the companyís own claims data**, show that one in five of all claims settled on behalf of businesses in 2005 was crime related.

In the last three months of 2005 alone, the number of crime related business insurance claims settled by AXA increased by a massive 27% compared to the previous quarter. The average claim payment made during the period was 3,942. This was up from an average amount of 3,337 between July and September.

Commenting on the results, Neil Mercier, property insurance manager at AXA, said: ìThese findings demonstrate just how much of a problem crime is for small and medium sized businesses. Crime accounts for one-fifth of our entire claim book and while most are low-level, inexpensive crimes such as petty theft and malicious damage, some claims run into tens of thousands of pounds and can put enterprises out of business entirely.

While it is impossible to stop a determined criminal, there are measures businesses can take to protect their premises, stock and staff from the threat of crime and we recommend managers and owners of small enterprises review the security measures they have in place and conduct thorough and regular risk assessments. Our website, www.axa4business.co.uk contains a range of guides for SMEs including on how to protect themselves from criminal activity.î

Quarter four findings from the AXA Business Crime Index
Arson is the most financially crippling crime small businesses face accounting for less than five per cent of crime related claims but over forty per cent of the settlement amounts. Theft is the most prevalent type of crime facing businesses accounting for nearly two-thirds of crime related claims settled by AXA.

Type of claim % of all Crime Related Claims Settled Q4 2005 (cost) % of all Crime Related Claims Made Q4 2005 (numbers)
Arson 42.12% 4.49%
Forcible/Violent Entry/Exit 0.77% 0.78%
Goods in Transit 0.01% 0.02%
Malicious Damage 12.13% 32.64%
Money/Hold Up 0.00% 0.02%
Money (non-forcible) 0.01% 0.11%
Theft 44.95% 61.94%


UK business crime by city
Derby tops the city business crime table, with 30.7% of claims settled between October and December being crime related. Derby is followed by Bradford (30.5%) and Nottingham (28.91%). London (16.6%) had the lowest percentage of crime related business insurance claims settled over the period.

City % point Change Q2 2005 to Q3 2005 % Claims resulting from crime Q3 2005

Derby 4.44% 30.73%
Bradford 8.52% 30.46%
Nottingham 1.71% 28.91%
Cardiff 0.70% 26.97%
Middlesbrough 7.22% 25.00%
Liverpool 4.32% 23.51%
Ipswich -4.47% 23.11%
Birmingham 0.82% 22.32%
Manchester -0.46% 22.08%
Bath 0.14% 21.88%
Leicester -2.22% 20.73%
Leeds 2.01% 20.28%
Edinburgh 6.60% 20.05%
Norwich -0.36% 19.76%
Glasgow 0.70% 18.49%
Bristol 0.20% 18.14%
Newcastle 2.58% 17.33%
London 0.05% 16.61%


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.