Insurers expose £ 3.6 million worth of insurance frauds every day

14 Jul, 2015

Figures released this week by the Association of British Insurers (ABI) reveal that in 2014:

  • Insurance companies detected 130,000 fraudulent claims, equivalent to 350 every day. The value of these frauds was £1.32 billion, a 3% increase on 2013. Between 2009 and 2014 the overall value of frauds detected has risen by 57%
  • Dishonest motor insurance frauds were the most common and of highest value – 67,000, up 12% on 2013, valued at £835 million, up 3% on 2013.
  • The number of liability insurance frauds detected jumped by 75% to 19,800, with a value of £330 million, a 20% rise on 2013. This reflects insurers’ greater focus on bogus liability claims, including ‘slip and trip’ claims, and industrial deafness.
  • The fall in the number of detected fraudulent property insurance claims (both domestic and commercial) reflects the strong deterrent message hitting home to potential cheats. In 2014 the number of detected property frauds at 24,533 was down 29% on 2013, with the detected value at £108 million down 21%.

A spokesman for the ABI said: “Insurers are determined to do whatever it takes to identify and take tough action against fraudsters to protect their honest customers. The vast majority of customers are honest, and should not have to pay for the fraudulent minority. The insurance industry invests heavily in its counter fraud defences, and the results are helping to keep motor and home insurance competitively priced.

“Insurance cheats are now more likely to get caught than ever before, whether they are making a dishonest claim or lying when applying for cover to get a cheaper premium, and face long-lasting and  serious consequences. As well as the possibility of serving a custodial sentence, they will find it difficult to obtain vital financial services such as mortgages and loans, future job prospects are likely to be adversely impacted and family relationships suffer.