The ABI claims that insurance fraud to be at an all-time high

The ABI claims that insurance fraud to be at an all-time high

Over the past few years as a nation we have gone to great lengths to crack down on insurance fraud, an industry issue that is costing the insurance sector billions each and every year.

Although showing a great preoccupation to catching such fraudsters the Association of British Insurers (ABI) feel these efforts have not been effective in preventing such criminal activity, claiming insurance fraud to be at an all-time high.

ABI say that fake car crashes are helping to push the level of insurance fraud to a record-breaking figure of £1.3bn spent in 2013.

In 2013 we experienced a huge increase in the number of dishonest motorists reported with a rise of 34% of cases reported when compared to 2012 statistics.

There was allegedly close to 60,000 attempts to cheat the claims system last year, costing the insurance industry a whopping £811m.

As a direct result of such unethical drivers the insurance industry has to foot a huge bill each year, having no choice but to increase premiums to accommodate such outgoings. The ABI claims that insurers are changing an extra £50 a year to each household because of the state of the claiming process at present.

Although disheartening for fraud firms that have spend money and time to tackle this issue the industry is showing no sign of stopping, doing all they can to overcome the ‘crash for crash’ culture that the UK has employed.

Malcolm Tarling of the ABI told BBC Radio 4’s Today programme insurers were getting better at detecting fraudulent claims.

But he added: “Everyone pays for fraud. We estimate that across the country fraud adds £50 a year to the average family’s insurance bill – that’s £50 more than people should be paying.

“This is why the industry is investing over £230m a year in tackling fraud.

“The number of detected frauds is rising; that’s because we are getting better at detecting staged accidents. We are going to continue to tackle fraud – that’s what our honest customers expect us to do.”

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The ABI claims that insurance fraud to be at an all-time high
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