Losses from fraud and occupational crime cost ten times more than losses arising from property damage through fire, warned AIG Europe (UK).
Research by the group found that fraud is estimated to cost £32bn in the UK and this cost is rising at 8% per annum.
The company said while nearly all companies insure for property damage, the majority are still not insured against fraud.
AIG Europe (UK) corporate manager, financial lines Sarah Markham commented: “Many companies fail to recognise fraud as a significant threat to their business, so we believe that there is a real role for brokers to play in highlighting this area with their clients.
“In addition, many companies don't even know they are being defrauded – we estimate that one third of known frauds are actually discovered by accident. This is a significant risk businesses are taking and could have severe financial implications.”
