Insurers uncover 2,500 fraudulent claims worth £25 million every week

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Data published by the Association of British Insurers (ABI) has found that insurers were uncovering an average of 2,500 fraudulent claims every week in 2015, worth £25 million.

According to the ABI, insurance companies detected more than 130,000 fraudulent claims, the equivalent of 2,500 a week, up 6% on 2014. These frauds were valued at £1.3 billion, down 3% on 2014.

There was a significant rise in dishonest liability insurance claims, such as slip and trip claims, to 26,900. This was an increase in claims on 2014 by 36% and a 14% in rise in cost, at £391 million.

Dishonest motor claims remained the most common frauds in 2015 and of the highest value. 70,000 were detected, down slightly at 2% on 2014, with a value of £800 million, down by 10%.

While the value of fraudulent property claims uncovered continued to fall – down 2% to £107 million on 2014, the number of detected frauds at 27,500 rose by 7%.

James Dalton, the ABI’s director of general insurance policy, said: “Insurance cheats do not lack nerve or ingenuity, which is why there will be no let-up in the industry’s commitment to protect honest customers.”

“The chances of getting caught have never been greater, and the consequences, such as a prison sentence and difficulty in getting future insurance and other financial products, have never been more severe and long-lasting. The scale of frauds uncovered shows that the industry’s £200 million a year investment in tackling fraud is paying dividends, as is the collaboration with the Insurance Fraud Bureau and the Insurance Fraud Enforcement Department.

“And the industry is working hard with the Government to implement the recommendations of the Insurance Fraud Taskforce to make the industry even more resilient to this crime.”

Dalton added that reducing fraud was part of “a bigger picture” of reducing unnecessary costs, in order to provide “competitive insurance deals”.

“This is why it is important to ensure that the Government implements further proposals aimed at tackling rising personal injury claims, and that there are no further increases to the rate of Insurance Premium Tax,” said Dalton.

 

 

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Marek Handzel

Marek Handzel is the editor of Claims Magazine. Marek welcomes articles, letters, or feedback from readers and can be reached by emailing marek.handzel@barkerbrooks.co.uk