Instances of insurance fraud up by 14% in 2009
Insurers uncovered a record £840m worth of fraudulent claims in 2009, figures published today have shown.
An overall total of 122,000 insurance claims were rejected by the industry for being fraudulent during the year, a number which is up 14% from 2008, according to the Association of British Insurers.
The rise is likely to be due to a combination of insurers becoming increasingly sophisticated in their fraud detection, as well as an increase in the number of people submitting misleading claims due to the economic downturn.
Overall, insurers uncovered an average of 2,000 dishonest claims worth £16m every week.
Around 4% of all claims by value which were received by insurers during 2009 were found to be fraudulent, nearly double the figure for five years ago.
Motor insurance fraud accounted for nearly half of the total, with fraudulent claims worth £410m uncovered during the year.
But home insurance accounted for the highest number of dishonest claims at 62,000.