ABI Backs UK National Fraud Authority

The Association of British Insurers issued a bulletin strongly backing UK government proposals to establish a “National Fraud Authority” to tackle the problem. Plans call for the establishment of a national platform to coordinate a crackdown on the UK’s spiraling fraud problem.

ABI Director General Stephen Haddrill commented: “For too long tackling fraud has been a ‘Cinderella’ issue: under-reported and under-resourced. Yet fraud costs every person £330 a year [$643). We are therefore delighted that Government is taking action.

“Public authorities and the private sector must now work together through the leadership of the National Fraud Authority. The insurance industry will play its full part. Insurers are already uncovering fraudulent claims worth £400 million [$780 million] a year, and have set up the Insurance Fraud Bureau to tackle the rise in organized insurance fraud.”

He also cautioned that even more resources were vital, indicating, “We strongly support this more strategic approach, but it will be undermined if fraud detection is not given the resources it deserves. Police funding for this work must be enhanced.”