Insurance News Archive

Property owners reminded of arson threat

Property owners and insurers should pay more attention to the risk of arson a new study has claimed.

Research from the insurer Axa showed that more than half of all money paid out to UK firms in crime-related insurance claims is the result of arson, but the firm believes the risk is not taken seriously enough by businesses or landlords.

"We are extremely concerned that business crime rates across the UK continue to rise," said Axa's head of property, Neil Mercier.

"We are concerned that while crime against individuals continues to generate significant column inches, public awareness of business crime remains low."

Each arson claim results in a payment of £40,000 on average compare to an average payout of £4,000 for all crimes, the firm said.

According to the company's survey, claim settlements relating to arson rose by a fifth in the last quarter of 2006, while Glasgow was "the arson capital of the UK" as nearly 11 per cent of all SMEs insurance claims in the period were due to wilful fire-raising, double the average countrywide.

16 Mar 2007