“The insurance industry is working harder than ever to stop fraudsters in their tracks.”
Those were the words of Insurance Fraud Bureau (IFB) director Ben Fletcher when the Association of British Insurers (ABI) released its latest figures on fraudulent insurance claims.
According to the ABI, both the number and cost of such claims fell in 2021, with the 89,000 detected last year signifying the lowest level since 2007 and the total value (£1.1 billion) being the smallest sum since 2012. Compared to 2020 figures, volume and value decreased by 5% and 2%, respectively.
In terms of product type, here’s how many fraudulent claims were detected:
|
Product |
2021 number |
Change from 2020 |
2021 value |
Change from 2020 |
|---|---|---|---|---|
|
Motor insurance |
49,000 |
Down 7% |
£577 million |
Down 1% |
|
Property insurance |
18,000 |
Down from 24,000 |
£124 million |
Up 9% |
|
Liability insurance |
12,978 |
Down by 10% |
£378,000 |
Down by 8% |
“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 clampdown on insurance fraud, the costs of which end up being absorbed in the premiums paid by all customers,” said ABI chief fraud and financial crime officer Mark Allen.
“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. Fraudsters thrive in hard times, preying on the vulnerable. So, we urge people to be vigilant to the threat of financial scams, including those carried out online.”
Fletcher, meanwhile, wished for a further decline in insurance fraud figures.
“The insurance industry is working harder than ever to stop fraudsters in their tracks,” he stated, “and the fall in scams seen in 2021 is a great reflection of these efforts. While we welcome this positive progress, fraud levels are still far too high and countless innocent people sadly continue to be targeted by devastating insurance scams.”
He also urged the public to report any evidence of insurance fraud to the IFB.
“We have a bumpy road ahead of us, with a predicted rise in fraud due to the cost-of-living crisis driving people to find other means of financial gain,” added Detective Inspector Andrew Thompson of the City of London Police. “The need for solid partner-working between law enforcement and the industry is now more important than ever to prevent an epidemic of insurance fraud.”
