Fraudulent insurance claims 'mean higher premiums'
Published On 13 May 2007
Fraudulent insurance claims add £40 to every honest insurance customer's premiums, new research suggests.According to the Association of British Insurers (ABI), fraudulent insurance claims now cost insurance companies and honest consumers £1.6 billion a year - or £4 million pounds every single day.
One in ten adults admitted to making insurance claims which were not honest and opportunist fraud of this nature costs the economy £800 million a year.
People are most likely to make fraudulent claims on their home contents and building insurance policies, the study found.
"Honest customers should not have to pay for the cheats. Insurers are committed to reducing the fraud problem," said Nick Starling, the ABI's director of general insurance and health.
"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 organised insurance fraud."
Consumer website uSwitch also pointed out that fraudulent motor insurance claims were a serious problem in the UK.
"Fraud is a huge issue within the car insurance industry and undoubtedly it does increase the cost of insurance premiums for honest individuals who have never made a fraudulent claim," explained Aron Thompson, the site's head of insurance.
