The AXA Business Crime Index shows a 20 per cent increase in the number of crime-related insurance claims made by companies in 2006, compared with the previous year.
Business crime claims were up by six per cent overall in the last three months of last year, compared to the previous quarter.
“AXA is warning businesses to urgently review their security provision given this sudden and dramatic increase,” the report suggests.
“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.”
Arson claims also soared by a fifth. This is an increasingly expensive problem for businesses, AXA said. “Based on the amount paid out to victims it accounted for over half – 51 per cent – of all claims made.”
However, incidences of malicious damage, including vandalism and graffiti, fell by two per cent.
Neil Mercier, head of property at AXA, said: “We are extremely concerned that business crime rates across the UK continue to rise. For the first time since the inception of the Index we have seen business crime increase for three consecutive quarters.
“We are concerned that while crime against individuals continues to generate significant column inches, public awareness of business crime remains low. We want to increase awareness of this problem, highlighting the millions of pounds it costs SMEs in lost assets, productivity and business disruption.”
- The British Retail Consortium has welcomed the Government’s policy review – ‘Building on progress: Security, crime and justice’ – which suggested there had been too little emphasis on victims in the past.
The BRC, which has expressed concerns over the ‘in-store cells’ proposal (see page 12) said the review “had the right tone”, but questioned whether the plans would actually deliver anything.
Director general Kevin Hawkins said: “Given that shoplifting has risen by 70 per cent since 2000, we will take some convincing that these recommendations will actually achieve their aims.”
EBOOK: Lessons from IFSEC 2023 – Big Tech, Martyn’s Law and Drone Threats
Read IFSEC Insider’s exclusive IFSEC eBook and explore the key takeaways from the 2023 show!
Navigate the impact of Big Tech on access control, gain insights from Omdia’s analysts on video surveillance trends, and explore sessions covering topics like futureproofing CCTV networks, addressing the rising drone threat, and the crucial role of user proficiency in security technology.
There's also an exclusive interview with Figen Murray, the driver behind Martyn's Law legislation.
