The UK's Joint Fraud Taskforce has collaborated with the insurance industry to crack down on fake claims and scammers.

The Insurance Sector Fraud Charter – a voluntary agreement between the government and the industry – is designed to identify loopholes in the insurance market, enhance collaboration and criminal justice outcomes, better understand the scale of the problem and improve victim support.

The initiative comes after the number of detected fraudulent claims rose 16% from 2022, totalling 84,400 last year and costing the industry £1.1 billion ($2.2 billion).

“Tackling insurance fraud is an industry priority, and requires a collaborative approach between private and public sector,” Association of British Insurers director-general Hannah Gurga said.

“We’re delighted to have agreed the Insurance Sector Fraud Charter with the Home Office, boosting the industry’s resilience and ability to fight fraud.”

The ABI and other signatories have pledged to review the tactics used by fraudsters to promote bogus insurance offers; strengthen data security measures to stop scammers using customer details to target people; and identify policies being exploited by “illegal insurance intermediaries”.

“Fraud is an appalling crime, and we are determined to crack down on these callous criminals,” government minister Lord David Hanson said. “This charter is an important step, and we will continue to work with industry and law enforcement to better protect the public from fraud.”

See the charter here.

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