Insurance fraud not a serious offence, consumers tell YouGov survey.
The insurance industry is preparing to crackdown on fraud as consumers continue to believe it does not constitute a crime, according to a survey released this week.
The online survey of over 2,000 UK adults, carried out by YouGov for RSA, revealed that 56% of Britons do not think people who commit insurance fraud will get caught. Additionally, 1.2 million Britons do not consider this type of fraud a serious offence.
John Beadle, RSA’s counter-fraud manager, said: “Consumers need to be aware that in the near future we will be able to monitor fraud across a spectrum of financial products.
“So if a person commits fraud on an insurance claim and is detected, other financial services companies, such as mortgage lenders and credit card providers, will know, and that will have an impact on the success of their application.”
The government’s ongoing Fraud Review, published by the Attorney General’s Office, is intended to establish a national fraud strategy for all businesses and consumers.
The National Fraud Strategic Authority will be launched in October, while the national fraud reporting centre is scheduled to open in the first half of 2009. The centre is likely to take reports of fraud from the public and businesses, including insurers, and merge the information for data sharing with enforcement agencies.
Insurers are also taking advantage of technology from providers such as Cifas and National Hunter, which allow insurers to share fraud data.
Meanwhile, RSA’s survey also found that Britons are well aware of the consequences if they do get caught. Seventy-four per cent thought that getting caught could result in having their policy voided, and 59%
realised they may have to pay back previous claim payments and could face higher premiums.
A further 78% said they would think twice about committing fraud if it meant a black mark on their financial record.
Fraudulent insurance claims cost the industry over £1.5bn a year, which Beadle said added 5% on to honest policyholders’ insurance bills.
1.2 million Britons think it is OK to lie when making an insurance claim.
Of those who think it is wrong to lie, 40% do so anyway because they believe it is only a little fib.
Over 56% of Britons think it is unlikely people who commit insurance fraud will get caught.
74% of Britons think getting caught could result in having their policy voided.
59% realise they may have to pay back previous claim payments and could face higher premiums if caught.
78% would think twice about committing fraud if it meant a black mark on their financial record