The Association of British Insurers (ABI) has published figures showing the number of fraudulent claims in 2015. Collecting facts and figures is a key part of the ABI's work and their extensive data offers the most comprehensive coverage of the UK insurance market.
The main findings are:
- Insurers detected more than 130,000 fraudulent claims, equivalent to 2,500 a week, up 6% on 2014. These frauds were valued at £1.3 billion, down 3% on 2014.
- There was a significant rise in dishonest liability insurance claims detected, such as ‘slip and trip’ claims. The number, at 26,900, increased by 36%, and their value, at £391 million, was up 14% on 2014. This reflects the industry’s focus on this area that has increasingly been targeted by fraudsters, partly as a result of the Government’s clampdown on whiplash, and the reduction in legal costs for road traffic accident claims.
- Dishonest motor claims remained the most common frauds and of highest value. Over 70,000 detected, down slightly by 2% on 2014, with a value of £800 million, down 10%. This welcome fall reflected improved management of frauds within the industry, and the work of the Insurance Fraud Bureau (IFB) and the Insurance Fraud Enforcement Department (IFED).
- The number of detected property frauds rose by 7%, despite the value of property frauds uncovered continued to fall, down 2% to £107 million on 2014. Opportunistic property fraud remains an ongoing threat.
The detection of such a high number of fraudulent claims means the 'crackdown' on fraud is succeeding. James Dalton, the ABI's director of general insurance policy has said "the chances of getting caught have never been greater, and the consequences, such as a prison sentence and difficulty in getting future insurance and other financial products, have never been more severe and long-lasting".