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Clampdown on insurance fraudsters

Clampdown on insurance fraudsters

Category: Insurance

Updated: 26/11/2012
First Published: 14/09/2012

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 It is now over 6 months old so the content may be out of date.

In an attempt to crackdown on insurance fraud that costs the industry an estimated £1 billion a year, the Association of British Insurers (ABI) has launched an insurance fraud register.

The ABI estimates that every week a staggering 2,670 fraudulent insurance claims, worth £19 million, are being uncovered. This equates to £1 billion a year and adds an extra £50 to every UK policyholder's annual bill.

The register will contain details of all known insurance fraudsters, aiding the detection and prevention of fraud by insurers.

For motor insurance, there is already a fire register in place that aims to tackle the growing number of fraudulent fire insurance claims.

According to the ABI, home insurance fraud was the most common, with 71,000 dishonest claims, valued at £106 million, detected.

Fraudulent insurance claims were the most expensive, amounting to £541 million for the 45,000 bogus claims that were discovered.

"The industry makes no apologies for its zero tolerance approach to insurance fraud. Honest customers are sick of footing the bill for insurance cheats, through higher insurance premiums," said ABI director general, Otto Thoresen.

"The register will make it easier for insurers to prevent fraud by making details of known fraudsters available to insurers through secure protocol. It gives the clearest signal yet that we are more determined than ever to clampdown on insurance fraud," said Richard Davies from the ABI's financial crime committee.

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