New Zealand insurers are casting a more scrupulous eye over claims as cases of car theft and arson continue to show signs of rising.

Police crime statistics show car theft and arson cases rose last year, with the rise in arson being directly linked to fraudulent claims activity.

The statistics also reveal a 20% increase in arson cases over the past 24 months, while the number of cases solved has fallen by 12% over the same period.

Last year 20,240 cars were stolen in NZ – a 1.6% rise over 2008. Only 18% of car theft cars cases are resolved. But over the past 10 years, car theft has declined marginally from 23,093 in 2000.

While car theft costs the industry $NZ100 million ($81 million) a year, Insurance Council of NZ (ICNZ) CEO Chris Ryan says the figure is static and is dwarfed by the $NZ850 million ($687 million) in motor claims paid annually.

“The whole nature of motor is driven by a lot more factors than theft,” Mr Ryan told insuranceNEWS.com.au.

“Motor theft has been static in quite a few areas and in some it has actually been declining.”

Mr Ryan says the recession has caused more people to attempt insurance fraud, but most arson-linked claims are quickly uncovered.

A 2007 ICNZ survey revealed fraudulent claims cost insurers $NZ150 million ($121 million) a year, with international experience showing fraud accounts for 10% of all premiums.

Traditionally, the highest level of fraud in New Zealand is found in motor insurance, commercial material damages and travel claims.

“Insurers are putting in a lot more effort to investigate claims that are questionable, particularly if there is an expensive arson claim,” Mr Ryan said.