Of Special Interest


[x] [x]

31st July 2011

UK insurance fraud continues to rise

UK insurers are detecting more fraudulent claims than ever: over 2,500 worth £18m every week.
A gymnast with back trouble, a flying toilet roll holder, an invented wedding engagement, a fake photograph and an invisible wall were among the record number of fraudulent insurance claims detected by insurers in 2010 according to figures released by the ABI.
The figures highlight that in 2010:
-Insurers uncovered 133,000 fraudulent insurance claims-2,500 every week-up 9% on 2009. The value of these claims was £919m, also up 9% on the previous year. Over the last five years both the number and overall value of insurance frauds detected have risen by over 100%.
-The most common frauds involved home insurance with 66,000 bogus or exaggerated claims detected, followed by dishonest motor insurance frauds with 40,000 frauds uncovered. Motor frauds were the most costly, totalling £466m.
-The value of savings from detected frauds represented 5% of all claims, compared to 4% on 2009.
It is estimated that insurance fraud costs £2billion a year, adding, on average, an extra £44 a year to the insurance bill for every UK policyholder.
Nick Starling, the ABI’s Director of General Insurance and Health, said “Insurers are working harder than ever to protect honest customers against fraud. The savings made by weeding out fraudulent claims would otherwise end up being paid for by honest policyholders through higher premiums.
Fraudsters continually look for new ways to con insurers, so we are upping our game. Early next year we will be setting up a national Insurance Fraud Register, which will contain details of all known insurance cheats. And at the same time the first ever national police insurance fraud investigation unit will begin its operations, making it harder than ever to commit insurance fraud.”