Insurers detect more false claims

29/07/11
By Shane Gladstone

Figures have shown a rise of 9% in fraudulent insurance claims uncovered during 2010 compared to the previous year.

The ABI said that last year insurers sniffed out a total of 133,000 bogus claims - worth a total of £919 million.

The body said that the past five years have seen a 100%-plus rise for the total value of fraudulent cases uncovered by insurers - and for the overall number of cases detected.

Current estimates claim that the crime leaves every policyholder in the UK paying an extra £44 a year for their insurance.

The body said that motor fraud incurred the most cost, with 40,000 frauds totalling £466 million. But there were 66,000 bogus or exaggerated home insurance claims - making this the most common form of fraud.

Nick Starling, the ABI's director of general insurance and health, said: "The savings made by weeding out fraudulent claims would otherwise end up being paid for by honest policyholders through higher premiums."