Anorak News | The £4m A Day Insurance Scam

The £4m A Day Insurance Scam

by | 10th, May 2007

fenderbender1.jpgACCORDING to the Association of British Insurers, fraudulent insurance claims are costing the industry around £1.6billion a year – £4million a day.

The ABI, in its survey, also revealed that one in ten UK adults has admitted to cheating on an insurance claim.

Apparently, even fraud such as ‘bumping up’ the price of a damaged item costs insurers over £800million a year while overall almost £40 is added to the average premium in order to cover the costs to the industry caused by fraud.

ABI bigwig Nick Starling is not happy. Said he, “Honest customers should not have to pay for the cheats. Insurers are committed to reducing the fraud problem. We are devoting greater resources to weeding out the cheats and working together to detect and combat fraud”.

Lovely to hear such comforting words from such an honest and ethical industry…

Posted: 10th, May 2007 | In: Money Comment | TrackBack | Permalink