The latest Business Crime Index from AXA Commercial Lines and Personal Intermediary shows levels of crime committed against businesses in the UK have grown by 16% in the worst hit areas, while across the UK the cost of theft has increased significantly alongside a rise in the use of violence.
– 3% increase in crime for two years running
– worst hit areas see 16% rise in crime
– cost of crime is hundreds of millions of pounds
– average theft rises in value by 6%
– violent thefts climb by 6%
– arson rates up by 10%
The findings, taken from AXA’s business insurance claims records to end May 2012, suggest that the riots of last summer contributed to an overall 3% increase in the level of crimes against businesses during the last twelve months. However, riots aside, the increase reflects a general and continuing upward trend of crime against business in the last two years with a 3% increase also recorded for the previous year. In the top ten worst affected postcode areas of the country (see list below) the rise in crime rates over the last year has been 16%.
AXA estimates the total cost of business crime runs into several hundred million pounds with many businesses unable to claim back costs due to insufficient insurance provisions.
Types of Crime
The most common crime committed against business is theft accounting for around 74% of the total volume. And while numbers of thefts have risen only slightly over the last twelve months there has been a significant rise of 6% in the average value of theft claims to just under £4000. The number of thefts involving force or violence has also increased by around 6%.
AXA revealed that, aside from riot claims, arson was the crime that saw the biggest rise last year with around 10% more cases while malicious damage claims against businesses dropped by around 10%[1].
Matthew Reed, Managing Director, Intermediary for AXA Commercial Lines and Personal Intermediary says: “In a continued period of recession it is no surprise to see business crime levels rising, reaching costs of several hundred millions of pounds across the UK.
“It’s important to understand when, where and what types of crime businesses are experiencing, as it helps AXA work together with its intermediary partners to identify and manage risk, and ensure that businesses have adequate cover for their needs.
“We would urge brokers to use this opportunity to review clients’ insurance needs and ensure they are properly covered. A loss for a small business can be devastating, and it’s only right that we work together to ensure peace of mind for SME owners should the worst happen.”
The UK’s Business Crime Hotspots
When looking at geographical spread the table below shows the places with the highest rates of business crime across the UK in the 2011/2012 period and the twelve months prior to this.
| TOP TEN AREAS FOR BUSINESS CRIME
BY POSTCODE REGION |
||
| June 2011 – end May 2012 | June 2010 – end May 2011 | |
| 1 | Halifax | Walsall |
| 2 | Telford | Wolverhampton |
| 3 | Oldham | Coventry |
| 4 | Luton | Derby |
| 5 | Doncaster | Oldham |
| 6 | Dudley | Telford |
| 7 | Wolverhampton | Milton Keynes |
| 8 | Wigan | Dudley |
| 9 | Walsall | Lincoln |
| 10 | Bolton | Wigan |
– Halifax was in at number one this year after experiencing the second highest climb in crime rates in the UK over the last twelve months. Its position in 2010/11 was 57.
– Other newcomers in the top ten for 2012 are Luton, Doncaster and Bolton while Coventry, Derby, Milton Keynes and Lincoln have dropped out of the top spots since 2011.
– In terms of actual numbers of crimes against businesses, South West London is top followed by Leeds and Birmingham. But as overall numbers of business are also much higher in these areas, relative rates are lower keeping them out of the top ten.
– The postcode area with the biggest rise in crime rates was Sutton, with numbers of crime up by 140%, taking them to 19th place overall in the UK.
– The postcode area with the biggest significant fall in overall crime was Kilmarnock where numbers dropped by 42%.
