The Great British insurance scam
May 9, 2007 by admin
Filed under News, News-Insurance
Con-artists are costing the UK insurance industry £1.6 billion per year and we are suffering as a result.
The Association of British Insurers (ABI) claims that fraudulent insurance claims are rife in the country and innocent people are being penalised through increased premiums.
Research by the organisation shows that the average policy holder’s premium is £40 higher than it should be because £4 million worth of false claims are made every day.
The ABI carried out a survey which found that ten per cent of people have cheated their insurance company, either by completely fabricating a claim or exaggerating it.
Nick Starling, director of general insurance and health at the ABI, wants to see greater power given to the authorities to deal with the crime.
“Honest customers should not have to pay for cheats. These figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud,” he said.
“This is why we are calling for police forces to be given more resources so that fraud can be treated with the seriousness it deserves.”
The ABI says that around 50 per cent of all fraudulent claims centre on home contents and building insurance.
