Insurance fraud cost the UK industry £1.2billion last year.
The startling figures equate to 300 bogus claims a day – equivalent to one every five minutes.
Data from the Association of British Insurers (ABI) shows 107,000 fraudulent insurance claims were uncovered by insurers in 2019
It’s clear that poses a huge challenge to the insurance industry. Ultimately, it’s the honest people who pay the price.
One high profile case in 2018 that made the headlines saw 16 people involved in a ‘crash-for-cash gang’ that conned £1.2million out of insurers and earned them a combined 33 years in prison, with the ringleader receiving a six year sentence.
Lost luggage, ice cream van accidents and bus crashes all contributed to more than 130,000 fraudulent claims in 2015, the equivalent of 2500 per week.
Looking back over past years we can see that motor claims were the most common of frauds, according to the figures released by the Association of British Insurers (ABI), totally 70,000 instances amounting to a value of £800m.
Individual cases of note included an aircraft engineer who claimed £189,000 of luggage for an empty suitcase and 19 fraudsters laughing as they feigned whiplash injury after faking a bus crash.
But the ABI say greater efforts were being made on holding those who cheat in insurance accountable. And better news, the chances of getting caught have never been greater as it invests £200 million a year in catching the swindlers.
Used correctly, insurance is a safety net to protect you and your business when things go wrong. We’re always happy to help you stay on the right side of the law and protect the business you work so hard for.