According to the UK Association of British Insurers' statistics, fraudulent insurance claims are costing insurers and consumers more than GBP4 million every day. Annually, this would cost the industry GBP1.6 billion.
<p>The survey, commissioned by the Association of British Insurers (ABI), found that one in 10 adults had cheated on their insurance. As a result, this fraudulent behavior pushes the cost of insurance higher, adding nearly GBP40 to the average premium paid each year by honest policyholders. <br /><br />The survey of almost 7,000 adults also revealed that opportunistic fraud carried out by individual customers alone costs over GBP800 million a year and that the home is the richest source for insurance cheats. <br /><br />Commenting on the findings, Nick Starling, the ABI's director of general insurance and health, said: Honest customers should not have to pay for the cheats. Insurers are committed to reducing the fraud problem. We are devoting greater resources to weeding out the cheats, and working together to detect and combat fraud. The Insurance Fraud Bureau is already having a significant impact on tackling organized insurance fraud.</p>