News In Focus
ABI reports sharp rise in insurance fraud
Fraudulent insurance claims in the UK rose 14% in 2009, to a historical high of 122,000 – or almost one in 20 claims – it has been revealed. Figures from the Association of British Insurers put the total value of the attempted frauds at £840m.
Motor insurance fraud accounted for £410m of this, though the most common source of false or inflated claims was home insurance.
Despite the sharp rise in the number fraudulent claims, they have remained fairly static as a proportion of the total number of claims made during the year, which has also risen sharply.
The ABI argues improved fraud detection in the industry has also played a role. The group’s Nick Starling commented: "Our honest customers rightly object to having to pay higher premiums to subsidise the fraudulent minority, which is why insurers continue to up their game in the war on the cheats."