The Association of British Insurers (ABI) has annouced that insurance fraud cost £1.3bn in 2013 which marks an 18% rise in value on 2012 and equates to £3.5m worth of insurance frauds being uncovered every day! In 2013, 118,500 bogus or exaggerated insurance claims were detected – more than 2,000 a week. The biggest rise was in car insurance. The number of dishonest motor claims rose by 34% to 59,900, attempting to cheat the industry out of £811m.
Due to these fraudulent claims UK policy holders now have to shell out an extra £50 per year to cover the deficit. In an effort to reduce the amount of flase claims being made the insurance industry is now investing over £230m a year to tackle insurance fraud.