Insurance companies are uncovering and preventing fraudulent insurance claims worth over GBP1 million every day according to latest research from the Association of British Insurers, the trade association for Britain's insurance industry.
The Association of British Insurers’ (ABI) latest research into general insurance fraud reveals that: insurers are uncovering and preventing fraudulent claims worth GBP480 million a year, or GBP1.3 million every day.
One in 11 claims – around one million – are in some way fraudulent. Of these 85% involved exaggerating the value of a genuine loss. Nearly a half of all detected fraud was on household insurance. Typical scams exposed include deliberately damaging carpets then claiming that the damage was caused accidentally.
Nick Starling, director of general insurance and health at the ABI, said: Fraudulent insurance claims cost GBP1.6 billion, and add GBP40 a year to the premiums paid by honest customers. But the industry is fighting back. Insurance cheats are more likely to be caught than ever before. And cheats will pay a high price as future insurance and credit will be more expensive and harder to obtain.