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Scale of insurance fraud in UK revealed

Scale of insurance fraud in UK revealed

Scale of insurance fraud in UK revealed Insurance fraud stories seem to break on an almost daily basis – but the results of a new survey on the subject may still surprise you.

According to an AXA commissioned study, more than two million people in the UK have made a fraudulent claim – and the figures are only likely to have understated the problem given that many people simply won’t admit to breaking the law.

One of the examples highlighted in the report is the case of phone upgrade fraud. This is when someone claims that their device has been stolen or broken just as a new model is being released. Another example is the rise in compensation culture with many making whiplash injury claims. This was partly blamed on claims management companies themselves, however – with many seeking significant profits from claims.

According to AXA one of the biggest problems is that many people view insurance fraud as a victimless crime – indeed around half of those surveyed did not believe that insurers are always honest and another third believe that exaggerated claims are justifiable given that insurers “try to trick their customers”.

So what can be done to solve the problem?

Among the recommendations outlined in the report are that there should be a legal reform – for example the introduction of a six-month cut-off period during which a compensation claim can be made.

What do you make of the survey results and what can be done to tackle insurance fraud in this country? Leave a comment below with your thoughts.