BIBA says fake insurance claims up everyone's premiums

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BIBA says fake insurance claims up everyone's premiums

Tue 13th Apr 2010

Everybody's insurance premiums are affected when somebody makes a false claim on a policy and the industry is trying its best to catch people out, according to a representative from the British Insurance Brokers Association (BIBA).

Graeme Trudgill, technical and corporate affairs executive at the organisation, claimed that last summer fraud costs were estimated to be £1.9 billion in the insurance sector and this is making all premiums more expensive.

He made his comments following research by moneysupermarket.com, which showed that six per cent of Brits would consider making a false claim.

Mr Trudgill stated that something needs to be done about the "bad apples" that are defrauding providers in the sector, with such activity costing the industry £1.9 billion a year, according to figures released last summer.

"What the bureau has done is they have started to focus on cracking certain claims – organised crime like staged accidents," he explained.

The BIBA representative noted that is can often be a case of working out whether a claim has been exaggerated or simply made up.

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