News
Huge Rise in Fraudulent Insurance Claims in UK
Tuesday, May 12th, 2009
New figures released by the Association of British Insurers suggest that the recession has led to a huge increase in false insurance claims. This in turn is leading insurance companies to take stronger precautions to avoid paying out on fraudulent claims, which increases the costs involved for all claimants.
The report shows that around 107000 insurance claims in the UK were found to be fraudulent over 2008, an increase of 30% over 2007. The combined value of these claims came to approximately £730,000,000. Over half of these false claims were made against household insurance.
As a result, insurance companies are becoming even tougher when investigating claims. Fraudulent insurance claims are estimated to add £40 to the cost of every insurance policy, reflecting the additional work required to confirm the validity of each claim. In some cases, honest claimants have dropped their insurance claims because they felt intimidated by over-aggressive fraud prevention tactics from their insurers.
Using an insurance loss assessor to fully investigate the details of your case and back up your claim helps to reduce the risk of your claim being wrongly identified as fraudulent. If you’re about to make an insurance claim, contact us for expert professional help in making a strong case for settlement.
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