Fraudulent crimes on the rise

With the rise of fraudulent claims, policy holders in and around the UK are affected with increased premiums as a result of this criminal activity.

Experian, recently released an article (October 2013) that outlined; “Insurance fraud is currently estimated to be a £1 billion a-year industry in the UK. That equates to nearly 3,000 fraudulent claims every week with a value of £19 million. The cost of fraud is estimated to add £50 extra to the annual insurance bill of every UK policyholder. It is estimated that 1 in 7 motor insurance claims contain some fraudulent element.

Experian analysis shows that around 12 in every 10,000 applications and claims were found to be fraudulent in the UK last year, with the vast majority (80%) found to be by consumers, or so-called first-parties. The fraud rate, as a percentage of applications, has increased by 9%.”

With these shocking figures, companies are having to invest more and more to put a stop to this, scrutinising claims more thoroughly that is made. With this continuing to be more and more of an problem within the industry and premiums going up as a result,  the government last week announced the first in a range of measures to try and combat this issue.

Read more about it here:

http://www.insurancehound.co.uk/abstract/changing-insurance-fraud-18627?from=editorpick