There has been an 11% increase in the number of crime related claims settled in the second quarter of 2007 compared to the same period last year.

The findings were revealed in the latest Business Crime Index report by Axa Insurance which also showed that claims resulting from malicious damage had increased by 28%.

But perhaps of most concern to businesses was the huge rise in arson claims which leapt by 43%. The only good news was that incidences of theft decreased by 2%, but these still remain the most common cause, accounting for around half (52.8%) of the total claims settled.

Other key findings showed that the average claim settlement had increased by over £700 rising to £4,778 and Bristol has become the worst city in the UK's business crime league table.