Insurance fraud was at a record high in 2009, shows a recent study on the insurance industry.
According to figures released by the Association of British Insurers (ABI), last year the industry detected a total of 122,000 fraudulent claims, worth around £840m, up 14% year on year. The figures work out to about 2,000 bogus claims per week, for a sum of £16 million
The ABI figures show that 4% of all claims were fraudulent in 2009. Proportionally, this remains the same as 2008, indicating there were a higher number of claims in total.
The study, however, could not reveal whether this was due to better fraud detection by insurers or more fraudulent claims being made.
The value of fraudulent car insurance claims stood at £410m, the biggest number amongst all insurance segments. However, the most common case of bogus or exaggerated claim was for home insurance.
Nick Starling, a spokesperson for the ABI, said that with honest customers having to bear the burden of higher premiums due to the fraudulent practices of a minority, insurers constantly working on upping the ante “in the war on the cheats”.
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