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Fraudulent claims cost insurers £1.3 billion

Published 30 May 2014

The Association of British Insurers (ABI) has announced that fraudulent insurance claims cost UK insurers £1.3 billion during 2013, up 18 per cent on 2012 numbers - and fake motor insurance claims cost the most and were the most common. According to the ABI that £1.3 billion figure is double the cost of the UK’s shoplifting bill.

Fraudulent motor insurance claims accounted for £811 million, up 32 per cent on 2012 figures. There were 59,900 fraudulent motor claims in the UK in 2013. One of the results of the increase in fraud is an increase in the cost of premiums for every day, honest motorists.

Aidan Kerr, the ABI’s Assistant Director, Head of Fraud, said: "The vast majority of customers are honest and rightly expect tough action against the fraudsters. Insurance fraud is not a victimless crime, which is why the industry invests £200 million a year in fraud detection, including funding the Insurance Fraud Enforcement Department, and developing the Insurance Fraud Register, a central database of known insurance cheats.”

Vigilance from the public has increased with the number of fraudulent claims – calls to the Insurance Fraud Bureau’s Cheatline rose 32 per cent in 2013. “The more that is done to crackdown on the dishonest, the quicker and more effectively insurers can deal with the claims from the honest majority.” Concluded Kerr. 

Comments

SERAPH1212    on 30 May 2014

If they paid out, how do they know?

SERAPH1213    on 30 May 2014

Ballchinians. That is all.

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