ABI reports rise of 14% in 2009, with motor insurance fraud totalling £410m alone
The value of fraudulent claims detected in 2009 grew 14% to £840m, according to the ABI. The number of fraudulent claims reported was also up 14% to 122,000.
This meant that insurers were detecting more than 2,300 dishonest claims, together worth more than £16m, each week during 2009.
Motor insurance fraud was the highest by value, with dishonest claims totalling £410m. The largest number of false claims, however, were for home insurance, with 62,000 bogus or inflated claims detected.
The ABI said that 4% of all claims by cost were fraudulent, similar to the level seen in 2008 but double the figure of five years ago.
It added that many of the 8,500 dishonest liability claims involved fake personal injuries. In one example, head injuries were the result of blows from a baseball bat rather than a fall, as claimed.