Daily Insurance Industry News
Daily Insurance Industry News
Friday 19th of October 2018
August 26, 2009

Aviva pulls cover on insurance fraudsters

by David Masters

Story link: Aviva pulls cover on insurance fraudsters

Aviva pulls cover on insurance fraudsters Aviva pulls cover on insurance fraudsters

Aviva has reported a significant increase in fraudulent insurance claims during the first half of this year.

Fraudulent claims, including fake injuries and inflated car-repair bills, increased by around a third during the six months to June.

Andrew Buck, Aviva’s claims fraud manager, speculated that the rise in claims is related to the economic downturn.

“We cannot say how much of this is solely down to the economic climate,” Buck said. “Clearly when times are tougher, crime increases.”

Admiral, which runs price comparison site Confused.com, is the largest insurer so far to report a rise in insurance fraud.

“There is some evidence that people are either creating fictitious claims or lying about the number of people in their cars,” said David Stevens, Admiral chief operating officer.

“The industry is feeling some rise in fraud, including organised gangs committing fraud.”

According to the Association of British Insurers (ABI), an estimated £1.9 billion of fraudulent claims are paid out by insurers every year.

These fraudulent claims add £44 to an average insurance policy.


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