ABI says 133k fraudulent insurance claims made last year

With 133,000 fraudulent insurance claims made last year, the Association of British Insurers revealed that 40,000 motor car insurance claims were fraudulently made with car insurance companies in 2010.

Cheap car insurance for young drivers has nearly disappeared since the EU declared an impending ban on using gender as a determining factor in regards to car insurance rates.  It was recently revealed that young male drivers in particular have borne the brunt of this, with the average annual comprehensive cover for young men now standing at an eye-watering £4,000.

The annual car insurance premium rose by a factor of 3.6 per cent in the second quarter of 2011, according to the AA’s British Insurance Premium Index.  Even though the figure seems high, this increase is actually the smallest quarterly increase in the past 18 months, experts say.

Meanwhile, research conducted by an insurance comparison site discovered that 1.3 million drivers in the UK either already have or would consider causing a car accident deliberately in order to make car insurance claims.  Unsurprisingly the number of fraudulent insurance claims have increased by a factor of 100 per cent over the past five years.

AA Insurance’s director, Simon Douglas, said that fraud persists in being one of the largest challenges the insurance industry currently faces.  Despite this, insurers believe that much more lurks beneath the water in the form of a ‘culture of insurance crime’ that they pledge to take steps to put an end to as well as they can.

It is true that insurers are becoming more adept at identifying fraud attempts, Mr Douglas said.  Insurance criminals will be apprehended in a much more organised manner.

© 2018 All rights reserved. Reproduction in whole or in part without permission is prohibited. See our copyright notice.

What do you think?

Please note that email addresses are not visible on approved comments.