Insurance Fraud Rises Again!

How Big a Problem is Insurance fraud?

Insurance fraud costs us all millions every year.

The millions of insurance fraudulent insurance claims means that insurance companies have higher rates of claims, and larger settlements and in turn we have to pay higher priced policy prices.

Now this is a subject very close to our heart as you may remember we reported that a member of our team has recently been involved in an accident. Thankfully no one was hurt but both cars where badly damaged. We where horrified to discover that even thought our team member had informed all the relevant insurance companies that they where not hurt she had been approached on 5 separate occasions from four different companies and actively encouraged  to make a claim.

We hasten to add that they did not pursue any claim as there was no reason to no-one had been hurt after all and this is both a moral and a legal stance.

That said a jaw dropping amount of the general public do not agree and according to the ABI each week 865 dishonest claims are being discovered by insurance companies worth a staggering £10.4 m.

That’s is lot of additional premium prices we are all paying!

The ABI say that they attribute the rise to bogus passengers and fake injuries.

So what can the insurance world do to combat this yet still offer protection and support to genuine claims?

Well the ABI have just launched a brand new national data base to help called the Fraud Register which will enable insurers to check for fraudsters, and those found guilty of it would find getting insurance more difficult and more expensive.

So just how big is the problem or our insurance companies simply exaggerating?

Unfortunately the issue is massive with over 45,000 motor insurance claims made last year found to be fraudulent. This saved the insurance companies and us by default over £541m. We think however is our team members experience is anything to go by that the pressure put on accident victims is immense and that this is just a drop in the ocean. After all this is big business for the claims handlers and accident management companies and ” no-win no fee ” style claims organisations, who all in turn bill the main insurance company.

To scale the problem we where shocked to discover that this means that over 7 % of all insurance claims are fraudulent and that is you and I who are footing the bill in increased car and house insurance prices.

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