Insurance fraud continues to increase
Insurance fraud costs have increased by an estimated £1.9 billion this year, according to a new report released today. The report shows that insurance fraud is costing an average household of £44 annually in higher insurance premiums.
According to insurers, around £5.2 million of fraudulent claims go undetected every day in the UK. This is 24% rise compared with just two years ago.
The report released by Association of British Insurers (ABI) also indicates that companies are detecting fraud on a more regular basis. Over £730 million was rejected from suspicious claims last year.
The ABI said it had seen an increase in the number of people who were caught lying or withholding relevant information in an attempt to get cheaper insurance premiums.
The YouGov survey also found that while insurers are able to detect bogus claims quicker, now people are far more likely to lie on their insurance forms in order to obtain cheaper cover.
Some of the most popular scams included withholding information about speeding convictions and listing an incorrect address for the main driver of a vehicle.
The ABI said it had also seen an increase in the number of fraudulent accidental damage claims made on home insurance policies, with people deliberately damaging furnishings or electrical goods so that their insurer would pay for new ones. It also reported a 35% increase in claims involving the damage or loss of high value watches, laptops and LCD televisions.
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