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Fictitious claims discovered by UK insurers fell by a tenth over the past year, a decline the industry attributes to the knock-on effects of business closings and drivers being banned during the pandemic restrictions.
According to the latest data from the Association of British Insurers, general insurers identified 96,000 fraudulent claims in 2020, the lowest number since 2007. Government programs have also helped keep the numbers under control by alleviating financial distress, which is contributing to such attempts said Mark Allen, ABI’s chief fraud and financial crime officer.
Motor, the largest segment, saw a 6 percent decrease in fraudulent claims, which the trade authority attributed to fewer vehicles on the roads. The decline was due to a general decline in claims during the pandemic, which boosted auto insurers’ profits.
Fraudulent travel claims also fell as a result of the pandemic, although the ABI reported some colorful attempts, including one applicant who “tried to eat” when challenged. [the] forged documents â€. False liability claims also fell as companies were forced to close their doors during the lockdown.
Ben Fletcher, director of the Insurance Fraud Bureau, a not-for-profit, recognized collaboration within the industry to prevent insurance fraud from “rising as much as initially predicted” during the pandemic.
The percentage of total claims detected increased slightly, the ABI added, while the average fraud value rose 6 percent to £ 12,000.
