Crime against businesses has increased dramatically according to the latest AXA Business Crime Index.
The index, which is based on the insurer’s claims database, shows the number of claims settled as a result of criminal activity in the last quarter of 2004 rose by 22 per cent compared to the previous quarter. During the last three months of 2004, the average crime related business claim settlement was £3,643.
Businesses are most likely to be victims of theft or malicious damage; those two crimes accounted for more than 95pc of the crime related settlements handled by AXA Insurance in the last quarter of 2004. The most expensive criminal business insurance claim is arson, with some instances costing hundreds of thousands of pounds. While arson remains rare, accounting for 3pc of all crime related incidences settled, they account for moer than one-third of the total settlement amount. Neil Mercier, property insurance manager at AXA, said: “We have seen a sharp increase in the number of claims settled at the end of last year; one of the reasons for this could be because many business premises shut-down over the Christmas period making them easier targets.”
Response from business
This increase in business related crime has resulted in growing calls for tougher penalties for criminals. AXA’s research reveals that 58pc of businesses believe that the impact and seriousness of business crime is generally overlooked, and that there should be a greater focus on tackling this problem from both the Government and Police.
AXA research reveals that 62pc of businesses believe that there are not enough Police on the streets. In terms of the penalties used to punish criminals, the business community would like to see the following changes: 23pc want community service sentences to be lengthened; 32pc would like to see tougher financial penalties; 46pc want longer custodial sentences; and 29pc want to see more custodial sentences awarded.
What they say
Prof Martin Gill, Perpetuity Research & Consultancy International, Leicester University said: “Despite evidence that the public think that sanctions should be more punitive it is clear that businesses need to do more to help themselves. Proper risk assessments are key, malicious damage is common but not so costly, arson is rare but very expensive and inconvenient, they need appropriate but mostly different responses and businesses need to recognise that problems can be tackled by focussed and co-ordinated action.”
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