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Value of insurance fraud at record high

The number of fraudulent insurance claims detected by insurers increased by 9% between 2013 and 2014, research by the Association of British Insurers (ABI) has found.

Providers identified 130,000 fraudulent claims in 2014 - equivalent to around 350 every day.

The daily value of insurance fraud is now at a record high of £3.6 million.

The total value of fraudulent claims was £1.32 billion in 2014 - a 57% increase since 2009.

The ABI figures show:

  • motor insurance saw the highest level of fraud: 67,000 fraudulent claims were detected in 2014 valued at £835 million
  • liability insurance frauds increased 75% to 19,800, valued at £835 million
  • property insurance frauds fell 29% in 2014 compared to 2013.

The ABI said that the crackdown on insurance cheats is helping to push insurance prices down for honest customers. According to recent ABI research the average comprehensive motor premium fell 5% in 2014 and the average home contents insurance fell 3%.

James Dalton, director of general insurance policy at the ABI, said:

"Insurers are determined to do whatever it takes to identify and take tough action against fraudsters to protect their honest customers. The vast majority of customers are honest, and should not have to pay for the fraudulent minority. The insurance industry invests heavily in its counter fraud defences, and the results are helping to keep motor and home insurance competitively priced."

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