Insurance fraud is a growing concern in the UK, with fraudsters employing increasingly sophisticated tactics to deceive both insurance companies and the general public.
The Association of British Insurers (ABI) has recently released figures that shed light on the current state of insurance fraud and the industry's efforts to combat it.
Drop in Fraudulent Claims
In 2022, there was a 19% decrease in detected fraudulent insurance claims compared to 2021, bringing the total to 72,600 cases. This suggests that industry warnings about the severe consequences of fraud are having an impact.
Rise in Average Scam Value
Despite the drop in the number of fraudulent claims, the average value of a scam rose by 20% to £15,000. This is attributed to factors like an increase in property frauds and inflation.
Motor Insurance Fraud Remains High
Motor insurance accounted for the largest volume of fraud cases, with 42,500 cases representing 59% of total insurance claims fraud.
Some notable cases include:
A man jailed for making 15 fake travel insurance claims worth £75,000.
A fraudster imprisoned for cloning a claims management company's identity to arrange over 60 false motor insurance claims.
A Londoner who tried to pocket £50,000 by selling fake motor insurance as a "ghost broker".
A veterinary practice employee who claimed over £37,000 in fraudulent pet insurance claims.
A man jailed for making fake medical claims worth £24,000 against three insurers.
Mark Allen of ABI emphasised the importance of continued vigilance, urging consumers to be wary of deals that seem too good to be true. Detective Chief Inspector Tom Hill highlighted that insurance fraud affects real people, not just big companies.
Ursula Jallow of the Insurance Fraud Bureau (IFB) reiterated the industry's commitment to collaboration and the severe consequences for fraudsters, including potential listing on the Insurance Fraud Register.
While the industry has made significant strides in reducing the number of fraudulent claims, the rising value of scams is a cause for concern. Business owners and individuals alike should remain vigilant, understanding that insurance fraud impacts everyone. If you suspect fraudulent activity, report it to the IFB's CheatLine at 0800 422 0421. Remember, if a deal sounds too good to be true, it probably is.