09 September 2020 | Alyson Aslin
Figures released today by the Association of British Insurers (ABI) reveal 107,000 fraudulent insurance claims worth £1.2 billion were uncovered by insurers in 2019 – a 5% increase from 2018.
With nearly 300 fraudulent claims and 2,000 dishonest applications being detected daily, the ABI praised the industry's "relentless pursuit of insurance cheats to protect honest customers".
Key findings from the report show improved prevention measures and better reporting resulted in a significant increase in detected application fraud – up 200% on previous years.
Motor insurance fraud remains most common with a 6% increase in detected cases since 2018. While property fraud has seen a significant increase of 30%.
In contrast, the number of detected liability frauds has fallen by 14%. While the average value of a fraudulent claim has decreased from £12,200 to £11,400.
"ABI's latest figures help to draw attention to the clear challenges we are facing in the fight against insurance fraud. Insurance fraud is not a victimless crime, because fraudsters who carry out dangerous scams like 'Crash for Cash' and who deliberately damage property put lives at risk. These statistics show the problem remains significant and the sad reality is that the frequency of these scams normally only increases in times of recession and financial hardship."– Ben Fletcher, Director of the IFB
Source: IFB
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