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Insurance fraud rising, figures show

Insurance fraud rising, figures show

Category: Home insurance

Updated: 27/11/2012
First Published: 16/04/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Fraudulent insurance claims rose by 17 per cent in 2008, fresh figures have revealed.

Home insurance fraud was identified by the Association of British Insurers (ABI) as the most common - with 55,000 false or exaggerated claims over the course of the year.

This has contributed to total of 2,000 such claims being made each week, costing around £14 million.

Director of general insurance and health at the ABI Nick Starling warned that cheating will make it more difficult for a consumer to obtain a cover in the future.

And noting that the typical policy is £40 more expensive as a result of false claims, he said: "Fraud thrives in a recession, so insurers are intensifying their crackdown. The harder we make it for the cheats, the more competitive premiums will be for honest customers."

Sainsbury's Finance recently found that over 520,000 people have reduced their home insurance cover as part of cutbacks being made during the downturn, with a further 420,000 cancelling altogether.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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