According to a recent report insurance fraud is costing UK businesses £550 million a year. The research carried out by Mori shows that the insurance industry and its customers need to be more aware of insurance fraud and to protect themselves from it.
One of the reports findings was that firms are not always the victims they can commit the fraud also. One in seven businesses who made a claim was exaggerated and one in three of the largest firms in the UK gave false information on insurance proposal forms.
The report also found that one in twelve companies thought that exaggerating information on a car or property insurance claim was acceptable.
However, the report states that companies were victims as well. They found that in a two year period one in ten companies received false compensation claims by a customer. Whereas, bigger firms every two in three claims were fraudulent in nature.
Chris Hannant from the Association of British Insurers said: “This is the first research of its kind and the messages are stark – the £550m price tag and the fact that 15 per cent of claims are exaggerated highlight the challenge we face as an industry.”
Glen Marr from Zurich Financial Services added: “Fraudsters need to know that, at best, their actions may void their policy, and at worst they risk prosecution and becoming uninsurable.”