22 Oct

ABI reveals extent of home insurance fraud

ABI reveals extent of home insurance fraud

At least one in every eleven household insurance claims is fraudulent, according to recently released statistics from the Association of British Insurers (ABI).

Of these, some 85 per cent involved the claimant falsifying the actual value of their lost items, the figures showed.

This level of fraud equates to an estimated £1 million being detected by providers per day, and means that honest policy holders are charged an average of £40 more than they should be as providers look to cover their costs, Nick Starling, director of general insurance and health at the ABI said.

However, according to Mr Starling moves are afoot to crack down on the practice.

"The industry is fighting back. Insurance cheats are more likely to be caught than ever before. And cheats will pay a high price as future insurance and credit will be more expensive and harder to obtain," he asserted.

The ABI's data also revealed that men are 1.6 times more likely to falsify a claim than women.


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