Greater than £1.1bn of fraudulent common insurance coverage claims detected in 2024

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Your help makes all of the distinction. Learn extra Some £1.16 billion value of fraudulent common insurance coverage claims have been recognized in 2024 – a 2% improve on the £1.14 billion detected the earlier 12 months – based on the Affiliation of British Insurers (ABI).

Insurers uncovered over 98,400 fraud-related claims in 2024, a 12% rise from 88,100 in 2023, based on the ABI’s figures.

Some 51,700 motor insurance coverage scams value £576 million have been detected. That is 5% greater than in 2023 and equates to greater than half (53%) of detected bogus claims final 12 months.

Insurers additionally recognized 18,700 misleading property insurance coverage claims value £189 million – 11% greater than the amount of claims detected the earlier 12 months.

Exaggerated losses, when claims are intentionally inflated past their true worth, are a theme that insurers are seeing.

The ABI additionally stated insurers prevented an estimated 684,800 fraudulent insurance coverage functions final 12 months, a 7.4% improve from 2023.

Mark Allen, head of fraud and monetary crime on the ABI, stated: “It’s reassuring to see the trade making continued progress in tackling fraud, however with insurers persevering with to detect over £1 billion value bogus claims, the combat should proceed and there will probably be no let-up in insurers’ pursuit of fraudsters.

“Fraud doesn’t simply hurt its victims. It drives up premiums for everybody and causes grave emotional misery.

“That’s why cracking down on bogus claims and functions stays a high precedence, however fraud can’t be tackled in isolation. It wants a collaborative strategy alongside these in different sectors.

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“Quite a lot of fraud happens on social media, and it’s important that expertise firms and social media platforms work with us and play their half in prevention and detection.”

Ursula Jallow, director on the Insurance coverage Fraud Bureau (IFB), stated: “We're working carefully with the ABI, insurers, regulation enforcement and different key companions to disrupt fraud and protect the general public from scams.