The Association of British Insurers (ABI) estimates that the cost of fraud is more than £1bn per year on personal lines business alone, Debra Weekes told the IIR Insurance Fraud Prevention and Detection Conference in London yesterday.
On Monday Joe Cohen - director of the insurance fraud investigation division for the Kentucky Department of Insurance - told the conference, which was sponsored by Insurance Times, that the estimate for fraud in the US was 10% of all premiums - amounting to $79bn (£49bn) per year.
It is generally thought in the industry that the overall cost of fraud to UK insurers is in the region of £2-2.5bn per year.
