Motor still dominates fraudulent claims
- 23/08/2023
- Posted by: Alan Feldberg
- Category: News
New figures have revealed that motor insurance accounted for the majority of fraudulent claims uncovered last year.
According to the Association of British Insurers, 72,600 fraudulent claims were detected last year, representing a fall of 19%. But 42,500 of these (59%) were motor claims.
Meanwhile, the number of opportunistic frauds decreased by 18% to 63,000 cases, with a 20% fall in the volume of fraudulent personal injury claims. This is largely a result of the Official Injury Claim portal reducing the overall number of small personal injury claims being made.
But while the volume of claims fraud fell significantly, the total value of claims fraud fell by just four per cent, with the average fraud claim rising 20% to £15,000, and the value of opportunistic fraud increasing by two per cent, with a total cost to the industry of £1.1bn.
Mark Allen, the ABI’s assistant director, head of fraud and financial crime, said: “Fraud is now the most reported crime in England and Wales. As financial hardship increases, previously honest customers could be tempted to ‘act in the moment’ to exaggerate claims. These latest figures highlight that some fraudsters are aiming big, with some large frauds uncovered. This shows why there can be absolutely no let-up in pursuing insurance fraudsters.”
