Insurance fraud is when someone invents or exaggerates a claim, or does not tell the truth in order to obtain cheaper cover. It is a serious crime which can result in a criminal conviction and even imprisonment.
The ABI estimates that fraud adds, on average, an extra £50 to the annual insurance bill for every UK policyholder. In 2014, insurers uncovered 130,000 fraudulent claims worth £1.32 billion across all insurance products. This is why insurers invest at least £200 million each year to identify fraud.
In addition to improving their own anti-fraud systems, insurance firms fund industry initiatives including:
- the Insurance Fraud Bureau (IFB), a not-for-profit organisation specifically focused on the detection and prevention of organised fraud
- the Insurance Fraud Enforcement Department (IFED), a specialist police unit dedicated to prosecuting insurance fraudsters
- the Insurance Fraud Register (IFR), an industry-wide database of known insurance fraudsters
- the MyLicence data sharing initiative with Government which will help to tackle application fraud in motor insurance.
Reducing and deterring fraud remains a priority for the insurance industry. Our industry has a zero tolerance approach to weeding out the cheats.
Reporting insurance fraud
If you suspect someone of insurance fraud report them to the Insurance Fraud Bureau (IFB) Cheatline by calling 0800 422 0421 or by filling out a form on the IFB’s website.
- Guidelines (pdf 210kB) on the instruction and use of Private Investigators
- ABI no hiding place - insurance fraud exposed (pdf 663kB)
- Enforced Subject Access: Disclosure of Criminal Convictions (pdf 207kB)