Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 18th of January 2018
July 28, 2011

Insurers report 9% rise in detected fraud

by Gill Montia

Story link: Insurers report 9% rise in detected fraud

A flying toilet roll holder, an invented wedding engagement, a fake photograph and an invisible wall featured among the record number of fraudulent claims detected by insurers in 2010, according to the Association of British Insurers (ABI).

Around 133,000 fraudulent claims were uncovered last year (2,500 a week) with the figure up 9% on 2009. Fraudulent claims also up 9% in value, at £919 million.

The most common frauds involved home insurance, with 66,000 bogus or exaggerated claims detected, followed by motor insurance frauds with 40,000 uncovered.

Motor frauds were the most costly, totalling £466 million.

Commenting on the figures, the ABI’s director of general insurance and health, Nick Starling, says: “Fraudsters continually look for new ways to con insurers, so we are upping our game.”

He explains: “Early next year we will be setting up a national Insurance Fraud Register … 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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