Insurance fraud claims near £1 billionCrooked claims are increasing premiums
01 August 2011
More than 2,500 fraudulent insurance claims, worth £18 million are being lodged every week.
The Association of British Insurers (ABI) has found that 133,000 false claims were lodged in 2010, 9% more than in 2009 and a 100% increase over the decade. The crooked claims were worth in the region of £919 million, and are spread out across all types of general insurance, including car, home and travel cover.
Fraudulent insurance claims
The dodgy claims insurers have had to contend with include a claim for back injuries from a nightclub worker who was caught performing gymnastics and training for a charity run, and one for a lost engagement ring, the scam being uncovered when the claimant's ex-partner revealed she'd never been given a ring.
Cost of insurance fraud to consumers
Tackling insurance fraud costs the insurance industry £2 billion a year, adding £44 on average to premiums. Nick Starling, the ABI's director of general insurance and health said: '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.'
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