The latest findings from the AXA business Crime Index highlight a 20% increase in the number of crime-related insurance claims made by companies in 2006 in comparison with the figures for 2005. Business crime claims were up by 6% in the last quarter of 2006 in comparison with the previous three-month period.
The AXA Business Crime 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%). In counter-balance to that, incidences of malicious damage (including vandalism and graffiti) fell by 2% during the final quarter of last year.
Arson is an increasingly expensive problem for businesses. Based on the amount paid out to victims it accounted for just over half (51%, in fact) of all claims made.
Violent and forced entry claims in the last quarter of 2006 increased exponentially, more than doubling when measured against the previous three months.
Consequently, 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 GB pound 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 – head of property at AXA – told SMT: “We are extremely concerned that business crime rates across the UK are continuing to rise. For the first time since the inception of our Index, we have witnessed business crime increases in three consecutive quarters. We want to see more resources devoted to tackling this scourge.”
Mercier is particularly concerned that, while crime against the individual continues to generate significant column inches in the national press, public awareness of business crime in general remains low. “This problem is costing SMEs millions of pounds in lost assets, productivity and business disruption.”
Proposals to create holding cells in retail centres may help to combat retail crime but they must not be used to shift the responsibility for apprehending and holding criminals from the police on to shop staff.
“Retailers should not be used as a baby-sitting service for criminals,” said Kevin Hawkins, director general of the British Retail Consortium (BRC) in response to the latest Home Office consultation, this time looking at the Review of the Police and Criminal Evidence Act 1984. “That this measure is even being considered indicates just how significant the problem of retail crime has become. Some ten million shoplifting offences are committed each year, costing retailers GB pound 2 billion.”
The Government’s proposals would allow the police to use short-term holding facilities, or ‘cells’, to detain criminals who have committed a crime. These cells would be located in town and shopping centres. Suspects would be held under the supervision of a police officer, and detained for identification and processing only. Detainees ought to be held for no longer than four hours.
“The proposal has merit,” added Hawkins, “if it frees-up more police officers for front line duties. Shop staff should never be called on to fulfil the role of the police, though.”
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