The insurance industry needs an industry-wide policy on handling fraud, according to fraud experts VFM Services.

VFM managing director Bill Jackson said the industry needed to tackle fraud by follo ...

The insurance industry needs an industry-wide policy on handling fraud, according to fraud experts VFM Services.

VFM managing director Bill Jackson said the industry needed to tackle fraud by following a three-step route.

"First, it needed to establish a policy, second it should ensure its call centres act professionally and third, establish a quality assurance programme."

VFM's interactive session used computer-assisted response units to capture the audience's votes on fraud issues. Almost 50% of the audience had no fraud strategy and 70% had no plan to establish one in the coming year.

Yet 66% said that fraud cost the insurance industry more than £1bn each year.