Industry crackdown as insurance scams surge

The UK insurance industry identified £1.1bn worth of fraudulent claims last year.

Reducing bogus claims is a “top priority” for the industry, which uncovered 84,400 fraudulent claims last year, 11,800 more than in 2022, with an average claim value of £13,000.

According to the Association of British Insurers (ABI), these results mark a four per cent rise from the previous year.

Approximately 230 fraudulent claims were detected daily, with motor insurance fraud dominating the figures.

Motor-related scams accounted for over half of all detected fraud, with 45,800 bogus claims worth £501m.

Meanwhile, fake property insurance claims totalled £143m overall.

An increasing number of fraudulent insurance applications were also reported. An estimated 583,000 cases were uncovered an blocked – up 17 per cent from 2022.

As insurance fraud increased, industry leaders have urged the public to report suspected scams to protect consumers and reduce overall costs.

Mark Allen, ABI’s assistant director and head of fraud, highlighted the need to crack down on fraud to protect honest customers. Fraudulent claims push up premiums for all clients.

The Insurance Fraud Bureau (IFB) and City of London Police’s Insurance Fraud Department (IFED) also emphasised their joint efforts with insurers and law enforcement to combat scams, which pose financial and safety risks.

Detective chief inspector Tom Hill stressed that “insurance force is not a victimless crime”, reinforcing the impact on innocent motorists and premium costs.

These results follow ABI’s recent revelation that its members contributed a record £18.5bn in tax to the UK’s public finances over the last financial year.