Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 18th of October 2018
April 19, 2012

Insurance application fraud up 23%

by Gill Montia

Story link: Insurance application fraud up 23%

Insurance fraud rates reached 11 in every 10,000 applications and claims in 2011, according to Experian, with the proportion up 23% on 2010.

Figures from the credit rating firm show 89% of insurance fraud as first-party led with young, poorly-educated individuals living in small towns; middle-aged, middle and skilled working class individuals; and young, well-educated professionals accounting for 43% of cases.

Across the UK’s financial services sector the overall rate of fraud at point of application rose by 4% last year, to just over 17 in every 10,000 applications.

Nick Mothershaw, UK&I director of identity & fraud at Experian, comments: “About 70% of financial services application fraud in the UK fraud is down to first parties misrepresenting their circumstances, and the products such as mortgages and insurance that have seen fraud soar over the last year have a significant first party fraud element to them.”

 

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