IFB's membership now 95% of UK personal lines insurers
KGM Motor Insurance (KGM), a specialist provider of motor insurance products to niche markets and an authorised Lloyd’s syndicate, has become the latest member to join the Insurance Fraud Bureau (IFB).
The IFB’s membership now accounts for in excess of 95% of the UK’s personal lines insurers.
KGM, one month after becoming a member of the IFB, has been awarded a compensation order by the crown court following the conclusion of Operation Mysterious - a joint IFB operation with Hertfordshire Constabulary into a criminal syndicate involved in ‘crash for cash’ activity.
The compensation order amounts to half of the levy paid by KGM for membership of the IFB.
Fraud has hit record levels. The ABI has recently released statistics highlighting undetected general insurance claims fraud totals £1.9bn a year, adding approximately £44 to honest policyholders’ premiums.
David Wells, fraud manager at KGM, said: “Fraud has become a major issue for the entire insurance industry, not the least within the motor market. Sadly it looks to be a growing problem, particularly in the current economic climate. Whilst KGM is successfully defeating motor claims fraud, we recognise the benefits of the industry working in collaboration to fight fraud and so are delighted to have joined the IFB. To have seen a financial return so rapidly is fantastic.”
IFB chairman John Beadle said: "We are pleased to welcome KGM to the Bureau membership. Organised insurance fraud is a serious crime and ‘crash for cash’ scams put innocent policyholders at risk on the roads. The compensation order KGM has received further demonstrates that the Bureau concept works and illustrates the power of the industry working collectively.”