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Newsletter

Insurance fraud 'growing in the UK'

By Tom Farley, Mon 26 Jul 2010 - Published in Car Insurance

New figures from the Association of British Insurers (ABI) have revealed the extent of fraudulent insurance claims in the UK.

The report showed that more than 2,000 fake claims, worth over £16 million collectively, were detected in each week of 2009.

In addition, the research noted that the 122,000 fraudulent insurance claims uncovered last year represented a 14 per cent increase on the level reported in 2008.

The study revealed that motor insurance frauds were the highest value offences, with fake claims worth a total of £410 million being detected across the years. It also showed that home insurance fraud was the most common, as 62,000 fake or exaggerated claims were discovered.

Nick Starling, director of general insurance and health at the ABI, commented: "Reducing fraud remains an ongoing battle for the insurance industry. Our honest customers rightly object to having to pay higher premiums to subsidise the fraudulent minority."

Last week, Your Mortgage editor Paula John said that the financial services industry needs to find new ways to fight mortgage fraud.