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Newsletter

Insurance fraud 'at record levels'

By Marianne Straker, Thu 16 Apr 2009 - Published in Life Insurance

Insurers are detecting record levels of fraudulent claims, it has been revealed.

Research carried out by the Association of British Insurers (ABI) indicates companies are indentifying as many as 2,000 cases every week, worth £14 million.

Studies carried out by YouGov on behalf of the group also found one in five people would still be tempted to cheat on their insurance, despite the likelihood of being caught.

Nick Starling, the ABI's director of general insurance and health, said that fraud levels tend to rise in a recession so providers are intensifying their crackdown on cheats.

He added: "Cheating on your insurance really does not pay - you will get caught, future insurance will be more expensive and, along with credit, harder to obtain. The only thing you are likely to gain is a criminal record."

Earlier this week, studies by price comparison website moneysupermarket.com indicated just 18 per cent of motorists would volunteer truthful information to their insurer without being asked, while nine per cent would never tell the truth.