View more on these topics

Fraudulent insurance claims rise 17 per cent in 2008, says ABI

Insurers are detecting record levels of fraudulent insurance claims, the Association of British Insurers reveals today.

Figures released by the trade body today reveal its members are recording 2,000 fraudulent insurance claims every week, worth £14m.

ABI figures show that in 2008 107,000 fraudulent insurance claims were exposed, a rise of 17 per cent on 2007. The value of these claims, £730m, rose by 30 per cent on the previous year.

Dishonest claims on home insurance were the most common, with 55,000 false or exaggerated claims detected. By value, fraudulent motor insurance claims were the highest, with £360m saved.

The research found one in five people would still be tempted to cheat on their insurance, despite the likelihood of being caught, facing trouble in obtaining financial products in the future and getting a criminal record.

ABI director of general insurance and health Nick Starling says: “Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats. Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.

“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. The only thing you are likely to gain is a criminal record.”


Annual Kickout Plan from Keydata

Keydata has launched its first five-year Annual Kickout Plan, which offers investors the choice of early maturity at each plan anniversary, with a rising bonus facility.

Lincoln scraps annual admin fee

Lincoln Financial Group has removed the £100 annual admin fee on its retirement product Lincoln i2Live.

Precious metals see unprecedented boom

ETF Securities, the exchange-traded funds provider, says that its precious metals exchange-traded commodities (ETCs) surged by 400% in the first quarter of this year, breaking the company’s previous records. Precious metal prices rose in tandem with increased interest from investors.Physical metal ETCs proved especially popular. They are backed 100% by allocated metal in a vault, […]

The savvy consumer

In last year’s FCA thematic review of the mortgage market, one of the key things highlighted was the “savvy consumer”. That’s the client who comes in the door with a very clear idea of what they need and expect you to get them it. They don’t think they need advice, they have after all consulted […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment