Detected false insurance claims stabilise
False insurance claims presented a “fairly stable” picture last year, according to the latest Fraudscape report from CIFAS.
Overall, the number of false claims detected dropped, compared with 2009, with the decline occurring gradually during the course of 2010.
The decrease was driven by a fall in recorded household insurance frauds, which were down by 41% year-on-year.
Claims inflation remained one of the most common reasons for this kind of fraud, as policyholders continued to find it difficult to resist the temptation of inflating the values of goods stolen or damaged.
Meanwhile, levels of detected motor insurance fraud remained steady last year but CIFAS notes a rise in the proportion of frauds identified as “staged events” (42% in 2010, compared with 35% in the previous year).
The body reports that incidents of this kind have recently been associated with a “highly professional” network of gangsters with “doctors, solicitors, claims firms and victims all lined up ready to play their respective parts”.
Category: Car Insurance News, Home Insurance News, Insurance News
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