UK fraudulent claims fall to lowest level since 2007

5 September 2022

The Association of British Insurers (ABI) says fraudulent claims remain a challenge despite a drop last year, warning the ongoing difficult economic times will likely give rise to more scams.

ABI statistics show the number of fraudulent claims detected is at its lowest level since 2007, falling 5% to 89,000 from 2020 while the total value of fake claims declined 2% to a 9-year low of £1.1 billion ($1.86 billion).

“Fraudsters thrive in hard times, preying on the vulnerable,” ABI Chief Fraud and Financial Crime Officer Mark Allen said. “So we urge people to be vigilant to the threat of financial scams, including those carried out online.”

He says with many households battling a cost-of-living crisis, honest customers rightly expect there to be no let-up in the industry’s clamp down on insurance fraud.

“The fall in reported insurance fraud reflects the industry’s sustained counter fraud investment and collaborative approach, but no one can lower their guard against the cheats,” Mr Allen said.

Among the unusual cases that stood out last year involved unrelated claims made by two footballers, one a full-time player and the other a semi-professional, the ABI says.

The professional footballer received a one-year community order after admitting taking out a one-hour motor insurance policy to try and cover his tracks after colliding with another vehicle while driving uninsured.

The ABI says the semi-professional player in Scotland was filmed scoring a hat trick, despite claiming he had suffered whiplash in a car crash only hours before.