General insurance fraud up 30% with more front-end fraud
The Association of British Insurers (ABI) will on Thursday claim fraud has increased 30% since 2007 and undetected fraudulent general insurance claims costs £1.9bn a year, up from £1.6bn, The Guardian reports.
The crackdown by insurers on cheats during claims has led to more fraud at the "front end", when insurance policies are taken out, says the ABI.
"Through closer scrutiny of proposal forms and claims, as well as the exchange of information through industry-wide databases, the net is tightening on the cheats," said Nick Starling, the ABI's director of general insurance and health. "Anyone who sees insurance as a soft touch can end up with a criminal record, credit problems and costlier and harder-to-obtain insurance."
Walk away
The ABI report will also show an increase in "walk away" claims. These involve an insurer, suspicious of possible fraud, asking the claimant for more details of a claim, only for the claimant not to pursue the claim.
There has also been a 35% rise in claims for high-value home and leisure items such as LCD TVs, laptops and high-end watches. The ABI suspects many of these to be fraudulent.
