Axa reports on rising business crime

Arson, malicious damage and forcible theft are on the increase according to the results of Axa's latest Business Crime Index.

The insurer added that it supports Home Office steps to encourage better prevention of business crime.

The results show that for the second consecutive half-year (to end 2008), year-on-year numbers of crimes against businesses have increased by about 10% with a marked increase in what could be categorised as “recessionary” crime.

The index said that while the actual cost of crime remains at a similar level (down 0.04% year on year), businesses are now more likely to become a victim of crime.

Around one in 14 (7%) has been targeted in the last year, and as the recession bites, Axa believes this figure is likely to increase.

AXA has submitted its findings to the Home Office, who earlier this month demonstrated its concerns about business crimes with the publication of guidelines to both local crime prevention partnerships and businesses on how to tackle crimes against businesses.

The results from AXA’s index highlight the biggest crime growth areas as malicious damage and arson where the number of crimes are up 14% and 23% respectively. Additionally, while the value of forcible theft claims is down by 12%, the volume of breaking and entering crimes has increased by around 13% with around 4% of businesses becoming a victim.

The only type of crime that showed a decline over the period was non-forcible theft, where items are taken without breaking and entering having taken place. Trends also show that after a period of big increases, metal theft has declined reflecting the decrease in metal values. However, theft of plant from building sites is on the increase, possibly as a result of it being left unattended as construction projects are halted.

Gregor Elrick, head of property at AXA said: “Both malicious damage and arson tend to go up in a recession as premises are left unoccupied and unprotected by failed businesses, making them easier targets for vandals. Additionally, arson committed by business owners looking to claim on their insurance can rise in recessionary times.

“A rise in volume of breaking and entering (forcible theft) is also typical in a recession with people turning to crime to make ends meet.

“We are really not surprised to see these numbers in the current economic climate and we fully expect to see them continue to rise throughout 2009. However, we want to work with our customers and the Home Office to try and keep any rises to a minimum and spare people the trauma of becoming a victim in an already difficult time.”