In its submission to the U.K. Government Fraud Review the Association of British Insurers notes that fraud is a “fast growing crime, having doubled in the in the last five years. Fraud costs around £16 billion [$28.5 billion] a year, equivalent to £650 [$1158) a year for every household in the UK.”
The ABI called for “radical action” to combat the trend and urged the government to “conduct an overhaul of how fraud is tackled.”
Nick Starling, the ABI’s Director of General Insurance stated: “The extent of fraud is under estimated, and its detection under resourced. Yet its impact is very real and serious. It has become as big a money earner for criminal gangs as drugs. Insurance fraud alone costs at least £1.5 billion [$2.67 billion] a year and adds 5 percent to all premiums. And with the emergence of staged motor accidents, increasingly the public are at risk.
“We need a national fraud strategy based on greater prioritization and resources for the police and Crown Prosecution Service, to reinforce action being taken by the insurance industry to reduce the problem.”
The ABI is dedicated to implementing the following measures to combat fraud:
– Development of a national fraud strategy, with action plan, targets and process for accountability.
– Regional fraud squads, to provide the police with expertise and resources.
– More comprehensive data on the risks to different sectors, collected through a central collection point.
– Greater information sharing between the public and private sector.
Was this article valuable?
Here are more articles you may enjoy.