Commenting on the latest insurance industry fraud figures announced today by the Association of British Insurers (ABI).
28 July 2011
Unfortunately, there is still more that can be done. As the FraudStoppers research we conducted earlier this year highlighted, nearly a third of Brits, (29%) think it is acceptable to exaggerate a home insurance claim and we do continue to see some customers thinking it is acceptable to add items, even ones that they have never owned, to an insurance claim.
Thankfully, the message that this is fraud and wrong is getting through. For example, we recently had a customer who claimed that a theft had taken place at their home and rightly reported it to the police. However, their ex-partner subsequently, came forward and advised us that £3000 worth of the items that the customer had claimed for under their home insurance cover were items, that as part of their separation agreement, the ex-partner actually still had in their possession. As a result, the police prepared a court case and the policyholder was convicted of fraud for false representation.
So, its clear to us that we need to continue to improve understanding of what constitutes insurance fraud. People need to appreciate that insurance providers zero-tolerance policy applies to all fraudulent activity and that means what some people may consider, “just a small exaggeration”, could still lead to prosecution. Its not just the larger scale fraudulent activity that goes to court.
We make every effort to pay all valid claims. Plus, by working across the industry, with intermediaries and our customers, to continue to tackle insurance fraud, we hope that we will be able to reduce the extra £44 a year on average that insurance fraud adds to every UK customer’s policy.”
For more details of how Legal & General’s general insurance business is tackling fraud, visit www.legalandgeneral.com/fraudstoppers
For more information please contact:
t: +44 (0) 1737 375369
m: +44 (0) 7788 926790