’Cracking down on fraud continues to be a top priority for our industry,’ says assistant director
More than £1bn worth of fraudulent claims were detected across the insurance industry in 2023, new figures from the ABI have revealed.
Published today (25 September 2024), the trade body’s data showed that around 230 bogus claims were detected on average each day last year.
In turn, insurers identified 84,400 scams across 2023, which was 11,800 more than in 2022.
In turn, the cost of fraud increased by 4% year-on-year, reaching £1.1bn in 2023.
Mark Allen, the ABI’s assistant director and head of fraud and financial crime, said: “Insurance is there to protect people and businesses should the worst happen. It’s encouraging to see that the industry’s efforts to detect and prevent people from abusing this are working, but there can be no let-up in pursuing insurance fraudsters.
“Fraud doesn’t just impact victims that fall foul of the scammers, it affects everyone that pays for an insurance policy – with bogus claims pushing up the cost of premiums for all. That’s why cracking down on fraud continues to be a top priority for our industry.”
Types of fraud
The figures also revealed that more than half (54%) of detected bogus claims last year involved motor insurance.
Read: Serial fraudster who repeatedly targeted RSA jailed
Read: Uptick in fraudulent tinnitus claims is ‘an inherent, major issue’ for motor insurers
Explore more fraud-related content here or discover other news stories here
Some 45,800 scams were registered, which were valued at £501m in total.
Meanwhile, fake property claims rose by 16% year-on-year and were found to be worth £143m during 2023.
Detective Chief Inspector Tom Hill, from the City of London Police’s Insurance Fraud Enforcement Department (Ifed), said: “Insurance fraud is not a victimless crime. It increases the cost of premiums for honest customers, while fraudsters who sell fake car insurance or deliberately cause road traffic collisions to claim compensation put innocent motorists at risk.
“The figures released today show that around 230 fraudulent insurance claims are detected on average each day, showing that Ifed and the insurance industry will root out fraudsters and bring them to justice.”
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
He took up the position of deputy news editor at Insurance Times in March 2023, before being promoted to his current role in May 2024.View full Profile
No comments yet