April 16, 2009

The latest update on the insurance fraud wave sweeping the recession-hit UK comes from the ABI. They reckon insurers are detecting 2,000 dodgy claims a week. This is worth £14 million a week, apparently, so the fraud detectors must be due a bonus or at least some overtime.

Four percent non-life insurance claims were identified as fraudulent in 2008 ‚ up from three percent in 2007.

Stop me if you’ve heard this one before, but the ABI claim one in five people “would be tempted to cheat on their insurance, despite the likelihood of being caught, facing trouble in obtaining financial products in the future, and getting a criminal record.”

It sounds a lot like one in five people must be stupid as well as venal. Either that or they haven’t kept up with the latest bulletins from the insurance industry and still expect to get away with it.

Insurance Fraud Q&A

So, exactly how many fraudulent insurance claims were exposed during 2008?

Interesting you should ask. According to the ABI there were 107,000 fraudulent insurance claims exposed during 2008.

I suppose that represents a significant rise on the equivalent figure for 2007.

It certainly does‚ a rise of no less than 17% in fact.

And what about the monetary value of all these claims?

That rose to £730 million, a 30% increase on the previous year.

I don’t suppose you can tell me what type of claim was most prevalent?

Actually, thanks to those assiduous number crunchers at the ABI, I can. “Dishonest claims on home insurance were the most common, with 55,000 false or exaggerated claims detected.”

But surely…

I haven’t finished ‚ if you don’t mind! Although household claims were most numerous, motor claims were the most expensive, accounting for £360m of the £730,000 saved on fraudulent claims.

I’m not going to ask any more questions if you are going to be like that.

Fine, see if I care!

Whatever. Loser.


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