Insurance fraud is costing the UK £2 Billion per Annum
It has been reported that insurance fraud is costing £2 billion a year to be lost in the UK.
The Annual Fraud Indicator published by the National Fraud Authority reports, the total national fraud bill is £30 billion a year.
Steve Foulsham, technical services manager at the British Insurance Broker’s Association, in commenting on the report, said a more joined-up approach is required to tackle fraud.
“Where we come from, in the broking sector, we would like to see more communication between the broking community and the insurers,” he stated. He added combating the situation requires co-operative action across parties.
“If an insurer suspects fraud, the broker will know the client better, because they are closer – and can disclose this to the insurer to make sure that the outcome is the right one,” he added.
Nick Starling, the Association of British Insurer’s director of general insurance, said dishonest insurance claims alone cost around £2 billion a year, which adds on average an extra £44 a year to every household’s general budget.