The construction industry was hit hardest by insolvencies, making up 15.7 per cent of business insolvencies last year.According to Veda analysis of the Australian Securities and Investments Commission's 2015 business insolvency figures, other industries that were hit hard included accommodation and food services, which accounted for 7.4 per cent, and retail trade (6.9 per cent).Insolvencies in Australia increased by 13 per cent in 2015, compared with the previous year, with the number growing from 8794 in 2014 to 10,164 last year.Insolvencies rose in all states and territories, except Tasmania. Insolvencies in Western Australia hit a record high.Veda general manager for commercial and property solutions, Moses Samaha, said insolvencies fell in rental, hiring and real estate services, as well as manufacturing and agriculture, forestry and fishing.The most frequently cited cause of business failure was poor cash flow, followed by poor management.The most likely return to unsecured creditors is zero.Samaha said creditors could do more to monitor the performance of businesses that owed them money. "No business fails overnight. The signs of financial difficulty, including unstable credit behaviour, poor capital structure and overwhelming levels of debt and poor cash flow are evident in some cases for up to two years before closure," he said."If credit providers working with the likes of Dick Smith had maintained regular credit monitoring practices and registered their assets with the Personal Property Securities Register they could have minimised their losses."