Detected travel insurance fraud rose 85% last year to 4,500 cases, the sharpest increase of any line, according to the Association of British Insurers (ABI). Brokers are warning that honest holidaymakers are likely to feel the effects through tougher claims checks.
The combined value of fraudulent travel claims rose more slowly, by 16% to £8.6 million, or just under £2,000 per claim.
Travel stood out against the wider trend. Across all lines, insurers detected 93,900 fraudulent claims in 2025, down 2.7% on 2024, but their total value rose 14% to £1.34 billion. The average detected fraudulent claim was £14,300, the second-highest on the ABI’s records.
Motor accounted for 55% of detected cases, with 51,900 fraudulent claims worth £625 million. Property cases fell 6.2% to 17,700, but the average value reached a record £11,400. Exaggerated loss remained the most common type of fraud, with 26,900 cases.
Insurers also stopped fraudulent applications worth £1.8 billion. The number of detected application fraud cases rose 24%.
Mark Allen, head of fraud and financial crime at the ABI, said that although the rate of detected fraud fell slightly, fraudsters were targeting much bigger payouts.
Not all travel fraud is opportunistic. Among the case studies the ABI published alongside its figures was a £300,000 travel insurance scam built on fake identities, backed by fabricated medical documents and websites created to support the claims.
Norton Insurance Brokers said the rise in detected fraud would mean closer scrutiny of all travel claims.
“When fraud rises, insurers look harder at every claim, and honest travellers can feel that through more questions and more requests for evidence,” said Mark Wilkinson, managing director at Norton Insurance Brokers.
He said well-documented claims were settled fastest, and urged travellers to build a paper trail while away, with photos, receipts, and a police report or medical notes on the day something goes wrong. He also warned that even a small exaggeration could see an entire claim refused.
The broker’s advice includes photographing valuables before travel, reporting thefts to local police promptly, keeping all medical paperwork from treatment abroad, and declaring medical conditions when buying cover. Many policies require a police report within a set time, often 24 hours, so checking the wording matters.
For brokers selling travel cover, the figures make the case for stronger pre-sale and pre-claim guidance. Clear advice on documentation and deadlines can speed up legitimate claims and reduce the chance of disputes.
Disclosure is the other pressure point. The rise in detected application fraud suggests insurers are looking harder at what customers declare when they buy cover. For travel, that makes medical disclosure critical. A condition left off a policy, even innocently, can lead to a genuine claim being declined.
The case for honesty is also sharper than many customers realise. Inflating a claim, even slightly, can mean the whole claim is refused, and the customer’s details may be shared on industry fraud databases. That can affect their ability to buy insurance in future. Brokers who explain this upfront are protecting both their clients and their own claims experience with insurers.
