Fraud figures down
- 30 August 2022
- Posted by: Alan Feldberg
- Category: News
A crackdown on fraud is paying off with the Association of British Insurers reporting that both the number and cost of dishonest claims has reduced in the last year.
However, the average detected fraud still stood at a record £12,282.
According to ABI figures, fraud claims fell by five per cent to 89,000 in 2021, with total value dropping by two per cent to £1.1bn.
Motor insurance fraud was again the most common, although a downward trend was also identified here; the ABI said there were 49,000 frauds detected in the year, down seven per cent, although their value of £577m fell by only one per cent.
The number of organised motor frauds uncovered at 10,617 rose by eight per cent, partly as a result of initiatives by the Insurance Fraud Bureau to tackle crash for cash staged motor scams.
Mark Allen, the ABI’s chief fraud and financial crime officer, said: “Insurers continue to work hard to pay legitimate claims as soon as possible. With many households battling the cost-of-living crisis, more than ever honest customers rightly expect there to be no let-up in the industry’s clamp down on insurance fraud, the costs of which end up being absorbed in the premiums paid by all customers. The fall in reported insurance fraud reflects the industry’s sustained counter fraud investment and collaborative approach, but no one can lower their guard against the cheats.”