ABI pledges to continue fraud crackdown
The Association of British Insurers (ABI) says there will be “no let-up” in its crackdown on insurance fraud despite a 19% drop in fraudulent claims uncovered.
ABI says 72,600 fraudulent cases were discovered last year, with a 20% drop in opportunistic frauds and a similar fall in false personal injury claims.
Motor claims remain the most prominent area for fraudulent activity, with 42,500 made last year, accounting for 59% of the total false claims.
Despite the notable drop in volume, ABI says the total value of claims fraud only dropped by 4%, with the value of opportunistic fraud rising by 2%.
The average fraud claim was for about £15,000 ($29,381), a 20% rise since 2021, with the rising value of property claims and inflation given as reasons for the increase.
The ABI highlights several case studies of fraudulent activity, including a vet employee who had made 18 false claims across six insurers worth over £37,000 ($72,475) by utilising altered invoices sent to her work to claim for her benefit.
ABI Assistant Director Mark Allen says there is “no room for complacency”, given the ongoing cost of living crisis affecting the country.
“With many households and businesses continuing to face rising costs, now more than ever honest customers expect insurers to weed out the cheats and focus on paying genuine claims as quickly as possible,” Mr Allen said.
“As financial hardship increases, previously honest customers could be tempted to ‘act in the moment’ to exaggerate claims.
“These latest figures highlight that some fraudsters are aiming big, with some large frauds uncovered.”