Insurance fraud on the rise as recession sets in.

Tim — Tue, 28 Apr 2009 11:33:59 +0000

The BBC reported earlier this month that fraudulent insurance claims have risen considerably in the current recession.The value of fraudulent claims has risen by 30% on the previous year — with a total value of £737 million.

The most common type of fraudulent claim relates to home insurance. However, motor claims were the most valuable, worth £360 million.

Nick Starling, director of insurance at the ABI, states that ‘Fraud adds an extra £40 a year to the average premium’ — a frustrating prospect for most honest policy holders.

However, these figures only include detected fraud and exaggeration — it doesn’t bare thinking how many fraudulent claims could be slipping through the net.

Quotiva Insurance News » home insurance

Insurance fraud on the rise as recession sets in.