The cost of insurance fraud soared by 30% to 730m in 2008, according to figures published on 16 April 2009 by the Association of British Insurers. The ABIs research has revealed a 17% increase in the number of fraudulent claims to 107,000 last year, compared to 91,000 in 2007.
Dishonest claims on home insurance were the most common, with 55,000 false or exaggerated claims being detected. By value, fraudulent motor claims were the highest costing 360m and, overall, 4% of all claims were fraudulent, compared to 3% in 2007.
An ABI spokesman said a significant rise in the number of burnt-out vehicles has also been reported; We believe a lot of this increase is due to people being cash-strapped and becoming increasingly unable to meet payments on their cars and keep them on the road. He said the figures, collated as part of ABIs annual insurer survey, underlined evidence that crime and fraud increases in times of economic turmoil.
It is a testament to Insurers in detecting more fraud which demonstrates the Industrys vigilant and proactive measures in combating fraudulent claims.
16 April 2009