Public backing for the insurance industry's anti-fraud crack-down
It is not just insurance companies that are getting tough on insurance cheats. Results of a survey by the Association of British Insurers on public perception of insurance fraud highlights that the overwhelming majority - 88% - support the insurance industry’s increasingly tough stance on fraudulent insurance claims.
The results of the survey illustrates the success of the ABI’s latest anti-fraud drive, launched in April, as a major factor in changing peoples’ perception of insurance crime.
Tony Baker, ABI’s Deputy Director General, said:
"As our survey shows, people recognise that insurance fraud is not a victimless crime, and that honest policyholders who suffer through increased premiums. We are very encouraged that industry initiatives to tackle the problem, and raised public awareness are beginning to pay dividends. However, there can be no room for complacency. The cost of insurance fraud at £650 million a year, is still far too high, and, together with the support of our honest policyholders, the industry is increasing its commitment to tackling the problem."
Further support for the anti-fraud crackdown has come from the number of calls to the ABI cheatline. Since its introduction in April this year, over 1,500 people have phoned the free confidential service to report suspected fraudulent claims. Information passed on to insurers has led to a number of voided policies and arrests, which are likely to result in more convictions.
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Notes
- In 1999 the cost of fraud increased marginally to £650 million from £645 million in 1998. The number of fraudulent claims fell, however, by 5% accounting for 3.9 per cent of all non-life claims.
- In April this year, ABI launched a national awareness and advertising campaign to reduce fraud, improve detection and encourage prosecutions. The campaign included a series of advertisements in the national press, leaflets to policyholders reassuring them that the industry is taking steps to reduce fraud and warning those considering or making fraudulent claims, establishing and improving industry databases to verify check claims and initiatives targeted at problem areas.