Context
An ABI press release has stated that fraudsters are targeting bigger payouts. The latest data from the ABI reveals that insurers detect £1.34bn worth of fraudulent claims in 2025, a 14% increase on the £1.18 billion detected the previous year.
Key points to note and next actions
- Cracking down on insurance fraud remains a top priority for the industry.
- While the number of detected fraudulent claims fell slightly to 93,900 cases, down 2.7% on 2024, the value of fraudulent activity continued to rise sharply – illustrating its growing scale and sophistication.
- The average value of a fraudulent claim reached £14,300 last year – the second-highest level on record, just below the peak of £14,600 recorded in 2022.
- Motor insurance remained the area where insurers identified the highest level of claims fraud, accounting for 55% of all detected cases.
- Property insurance showed a similar year-on-year pattern. The number of detected fraudulent claims fell by 6.2% to 17,700, while their total value rose by 3.4% to £201 million.
- Travel recorded the sharpest increase in volume. Detected cases rose 85% to 4,500, while value increased 16% to £8.6 million.