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Insurance fraud costs an extra £44 a year

Industry findings reveal insurance fraud is rising

home insurance

Insurance fraud is costing UK consumers £5.2m a day, according to a new survey by the Association of British Insurers (ABI). The annual cost of fraudulent activity has now reached £1.9bn.

The cost of general insurance fraud has shot up by 30% since 2007, costing the average household an extra £44 a year. According to the ABI most people are caught lying or withholding relevant information in attempts to get cheaper insurance.

Nick Starling, ABI director of general insurance and health, said: ‘There is no hiding place for insurance cheats. Honest customers should not have to pay for the fraudsters. The tough approach taken by insurers to protect honest customers means that they are detecting more of the fraud committed. 

‘Closer scrutiny of proposal forms and claims, as well the exchange of information through industry-wide databases, is tightening the net on the cheats. Getting a criminal record, as well as difficulty in obtaining and more expensive insurance and credit problem await anyone who sees insurance as a soft touch.’

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