20 April 2009
Insurers are more likely to detect fraudulent claims due to better detection methods, reveals one expert.
Malcolm Tarling, spokesperson for the Association of British Insurers, says this may have "slipped under the radar" five years ago, although this is no longer the case.
He continues: "We know that fraud tends to rise in a recession. There is no doubt that some of these frauds, not all, but some may be linked to the current economic climate."
More sophisticated techniques are being used to catch those who make illegitimate claims, says Mr Tarling, with people advised to look for a policy online to avoid getting caught.
The majority of fraudulent cases are made by opportunists, the expert reveals, with insurers checking regularly to ensure consumers are getting a fair deal.
According to the Insurance Fraud Bureau's website, bogus and inflated insurance claims cost the UK insurance industry over £1.6 billion a year and this can add five per cent to every policyholder's premiums.