Context
According to ABI data there was a fall in both the number and cost of dishonest claims uncovered last year compared to 2020. However, the average detected fraud was at a record £12,283, due to the slower fall in their total value.
Key points to note
The figures highlight that in 2021 compared to 2020:
- The number of fraudulent claims detected fell by 5% to their lowest since 2007. Their total value at £1.1 billion dropped 2% to the lowest level since 2012.
- Motor insurance claim frauds continued to be the most common, albeit that last year saw a fall in their total volume and value. There were 49,000 frauds detected, down 7%, although their value, at £577 million, fell by only 1%. The number of organised motor frauds uncovered at 10,617 rose by 8%. This rise in part reflected initiatives by the Insurance Fraud Bureau to tackle crash for cash staged motor scams.
- While the number of property insurance frauds dropped to 18,000 compared to 24,000 in 2020, their value rose to £124million, up 9%. This was driven by a rise in the value of commercial frauds uncovered.
- The number of fraudulent liability insurance claims uncovered at 12,978 dropped by 10%; their value, at £378,000, fell by 8%.
Next actions
None – for information and awareness.