Insurance fraud on the increase, figures show

16 April 2009



Record numbers of fraudulent insurance claims are being made, the Association of British Insurers (ABI) reports, with the increase thought to be fuelled by the economic downturn. It suggests that 107,000 fraudulent claims were exposed last year, marking a rise of 17 per cent on figures from the year before.

"Cheating on your insurance really does not pay – you will get caught, future insurance will be more expensive and, along with credit, harder to obtain," comments Nick Starling, the ABI's Director of General Insurance and Health. He adds that the only thing fraudsters will gain from it is a criminal record, with increased insurance premiums also a likely result.

Additional statistics reveal dishonest home insurance claims are the most common, with 55,000 false or exaggerated claims noted last year. Furthermore, in a recent YouGov survey, the ABI reveals one in five people would still consider making a fraudulent claim in the future.

Tim Constable, partner in the litigation and dispute resolution team comments: "As sure as night follows day, recession increases fraud. This is principally because people are committing more frauds to supplement their declining legitimate incomes or because earlier frauds are being exposed."

Whatever the challenge you are facing, we can help you keep control of the situation. We are able to advise on the best approach, whether it be litigation or mediation, to advance and protect your interests. For legal advice, please contact the litigation and dispute resolution team on 01753 279037 or email disputes@bpcollins.co.uk.

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