Daily Insurance Industry News
 
 
Daily Insurance Industry News
Friday 20th of April 2018
September 13, 2012

Fraudsters add £50 to honest policyholders’ bills

by Richard Kilner

Story link: Fraudsters add £50 to honest policyholders’ bills

The Association of British Insurers (ABI) has revealed that each week 2,670 fraudulent insurance claims worth £19m are being discovered.

In the continuing fight against fraud, the insurance industry has launched the Insurance Fraud Register which will contain details of known fraudsters.

The ABI report found that 139,000 fraudulent claims were made last year, a 5% rise on 2010.

Home insurance was the prime target for fraud, with 71,000 false claims worth £106m made in 2011, but dishonest motor claims were worth the most at £541m.

The cost of fraud is significant and clear, as fraudulent claims add an average of £50 to the annual insurance bill of every UK policyholder.

ABI Director General Otto Thoresen said that the insurance industry made no apology for its zero tolerance approach to fraud, adding that honest customers were sick of footing the bill for insurance cheats.

There may be good news on the way during 2012, as information and data company Experian reported in August that insurance fraud attempts fell by 16% between April and June this year.

 

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