Fraud detection techniques are enabling insurers to expose more fraud, the Association of British Insurers (ABI) says.
Fraud detection techniques are enabling insurers to expose more fraud, the Association of British Insurers (ABI) says. In its briefing note, ‘Insurance Fraud; it honestly does not pay’, ABI details the cost impact of fraud. The report points out that two-thirds of people surveyed admitted that they would make a dishonest claim if they thought they could get away with it. The ABI believes that fraudulent claims submitted to insurers on individual general insurance policies amount to more than œ1b a year – the actual cost to the industry is much higher than previous estimates, the ABI says. The association estimates that around 10 per cent of motor and 15pc of household claims submitted are thought to be fraudulent. Mary Francis, ABI?s Director General, said: ?Fraudulent claims are a major problem for the insurance industry, and our customers. Honest policyholders pay the price for insurance cheats, which is why the industry is committed to re-doubling its efforts to reduce the scale of the problem. Improved fraud detection techniques, and greater use of shared information are enabling insurers to expose greater numbers of dishonest claims, and the industry is working on more ways of detecting fraud. Our message to potential cheats is: fraud is a crime, and it is now more likely to be exposed than ever.? Through the ABI, insurance companies are targeting fraudsters more intensively than ever, through measures such as:
greater pooling of resources and expertise, including sharing best practices between insurers;
developing a bespoke, single industry-wide anti-fraud database; and more co-operation with all other interested agencies, such as Government and police, to reduce overall financial fraud. David Neave, Chairman of ABI?s Anti-Fraud Committee, which is steering the industry?s fraud reduction strategy, said: ?Honest policyholders should be reassured that we are turning up the heat on insurance cheats. Insurers are determined to work closely together to reduce the problem, rather than simply pushing the problem from one place to another. While there is no quick fix to this costly problem, there is a strong commitment for a more strategic and concerted industry approach.? Visit www.abi.org.uk.
