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

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

VFM's managing director Bill Jackson said the industry needs to tackle fraud by following a three step route.

"First they need to establish a policy, secondly to ensure that 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.

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