22
Oct
ABI reveals extent of home insurance fraud
At least one in every eleven household insurance claims is
fraudulent, according to recently released statistics from the
Association of British Insurers (ABI).
Of these, some 85 per cent involved the claimant falsifying the
actual value of their lost items, the figures showed.
This level of fraud equates to an estimated £1 million being
detected by providers per day, and means that honest policy holders
are charged an average of £40 more than they should be as
providers look to cover their costs, Nick Starling, director of
general insurance and health at the ABI said.
However, according to Mr Starling moves are afoot to crack down on
the practice.
"The industry is fighting back. Insurance cheats are more likely to
be caught than ever before. And cheats will pay a high price as
future insurance and credit will be more expensive and harder to
obtain," he asserted.
The ABI's data also revealed that men are 1.6 times more likely to
falsify a claim than women.
