The UK insurance sector has intensified its crackdown on fraud, with new figures showing the scale of the problem facing both the market as a whole and individual firms.
The Association of British Insurers (ABI) reported that in 2023 insurers detected £1.1 billion in fraudulent claims, an increase of 4% compared with 2022. Separately, Allianz UK disclosed that in the first half of 2025 it uncovered scams worth £92.6 million, up 34% on the equivalent period in 2024.
The ABI said insurers identified 84,400 fraudulent claims in 2023, more than 11,000 higher than in 2022. The average case was worth £13,000. Motor fraud remained the dominant category, with 45,800 cases valued at £501 million, more than half of the total. Property fraud also climbed, with claims worth £143 million, while insurers blocked 583,000 false applications, a 17% increase.
The Allianz report points to fraudsters’ evolving methods. The firm said ghost brokers continue to present a persistent challenge, repeatedly altering policy details and exploiting short-term policies.
Criminal groups are also targeting moped riders in the gig economy, often linked to delivery work. Allianz noted ongoing exaggeration of non-tariff injury claims and a practice it describes as “claims ballooning,” where cases grow significantly once liability is admitted.
The ABI stressed that tackling fraud remains central to its agenda. “Insurance is there to protect people and businesses should the worst happen,” said Mark Allen, its Head of Fraud and Financial Crime. “It’s encouraging to see that efforts to detect and prevent abuse are working, but there can be no let-up. Fraud impacts everyone who pays for cover.”
The ABI and the Insurance Fraud Bureau (IFB) have highlighted the impact scams can have on victims, with IFB Director Ursula Jallow warning that fraud carries financial, social and psychological consequences. Detective Chief Inspector Tom Hill of the City of London Police’s Insurance Fraud Enforcement Department said fraud is “not a victimless crime,” pointing out that scams can increase premiums and put motorists at risk.
Allianz, for its part, underlined its focus on prevention, citing investment in machine learning and voice analytics to detect fraudulent claims more quickly. It has also partnered with Carpe Data, a US-based technology company, to strengthen checks on personal injury cases, adding to its collaboration with Clearspeed on voice analytics. The insurer said closer work with brokers is another key part of its strategy.
Ben Fletcher, Allianz UK’s Director of Fraud, described fraud as a “serious threat to trust, fairness, and the financial wellbeing of honest customers.”
He said the company is pursuing a “multi-layered approach” that blends technology with human insight. “Fraudsters are evolving, but so are we,” Fletcher added. “This isn’t just about catching fraud; it’s about protecting genuine claims and safeguarding the integrity of the insurance industry.”
With ABI figures showing that in 2023 an average of 230 fraudulent claims were detected each day, and Allianz warning of rising threats through 2025, insurers are presenting a united front.
Whether through industry-wide cooperation, targeted police operations, or investment in technology, fraud will remain at the top of the agenda as firms seek to defend honest customers and maintain confidence in the sector.
