British insurance fraud hits record levels
Economic hardship always leads to insurance fraud, but the Association of British Insurers (ABI) says fraud in the UK has already reached record levels with 2000 cases being exposed every week.
ABI figures reveal a 17% hike in fraudulent claims with 107,000 cases claimed by insurers last year, while the total value of those claims increased 30% to £730 million ($1.5 billion).
Dishonest claims on home insurance were the most common type of fraud, with 55,000 false or exaggerated claims detected. But fraudulent motor insurance claims were the most costly at £360 million ($745 million).
Fraudulent claims accounted for 4% of all claims last year, against 3% in 2007.
In a separate survey of 3000 British adults, the ABI found one in five respondents would consider making a false insurance claim.
General Insurance and Health Director Nick Starling says fraud thrives in a recession, “so insurers are intensifying their crackdown on insurance cheats”.
ABI figures reveal a 17% hike in fraudulent claims with 107,000 cases claimed by insurers last year, while the total value of those claims increased 30% to £730 million ($1.5 billion).
Dishonest claims on home insurance were the most common type of fraud, with 55,000 false or exaggerated claims detected. But fraudulent motor insurance claims were the most costly at £360 million ($745 million).
Fraudulent claims accounted for 4% of all claims last year, against 3% in 2007.
In a separate survey of 3000 British adults, the ABI found one in five respondents would consider making a false insurance claim.
General Insurance and Health Director Nick Starling says fraud thrives in a recession, “so insurers are intensifying their crackdown on insurance cheats”.