Insurance firms 'have ways to tackle fraud'

By Marianne Straker, Wed 28 May 2008 - Published in Home Insurance

An increasing number of insurance companies are looking at a number of different ways to tackle fraudulent insurance claims, it has emerged.

Different methods, such as voice recognition, are now increasingly being used by insurance providers in order to tackle fraud, a personal finance expert claims.

"Insurance companies are becoming very prudent in terms of their finances. It's become a very cut throat business and insurance companies are very careful about how they pay out these claims," said David Kuo, head of personal finance at Fool.co.uk.

He added that it is now "irresponsible" of people to lie on their insurance claims as they will get found out.

And there are a variety of different ways for insurance companies to check claims are not fraudulent, he said.

Research released by the Association of British Insurers revealed that in the year to March 2007, some 11 per cent of total claims contained some form of opportunistic fraud.

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