Insurance fraud register launched

| September 13, 2012 | 0 Comments
Insurance fraud register launched

The Association of British Insurers (ABI) has launched the Insurance Fraud Register in an effort to cut the number of fraudulent insurance claims.

Around 400 fraudulent insurance claims are made each day, according to an ABI report.

This adds up to £1 billion a year and means that insurance premiums cost an average of £50 more than they need to.

It is hoped that reducing fraudulent claims will increase profits for the insurance industry and reduce the cost of premiums for customers.

The number of fraudulent insurance claims grew by 5 per cent last year to a total of 139,000.

Otto Thoresen, Director General of the ABI, said: “The industry makes no apologies for its zero tolerance approach to insurance fraud.

“Honest customers are sick of footing the bill for insurance cheats, through higher insurance premiums.”

The Insurance Fraud Register will provide insurers with details of all false or fraudulent claims, allowing them to check if a customer has previously made a bogus claim.

The ABI’s Richard Davies, who led the working group which developed the Register, said: “The Register will make it easier for insurers to prevent fraud by making details of known fraudsters available to insurers through a secure protocol.

“It gives the clearest signal yet that we are more determined than ever to clampdown on insurance fraud. Those that defraud insurers and their honest customers face real and tangible consequences for their actions.”

Last month the Insurance Fraud Bureau (IFB) announced a new intelligence sharing agreement with the Government’s Vehicle and Operator Services Agency (VOSA) as part of its efforts to combat organised motor insurance fraud.

VOSA will share its licensing, testing and enforcement data with the IFB.

Stephen Dalton, Head of Intelligence at the IFB, said: “The IFB uses world-leading counter-fraud software to interrogate 130 million records of insurance every day.

“The more sources of data we can cross-examine our investigations against, the deeper we can delve into the complex workings of criminal gangs targeting our industry.”


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