Sponsored content: Simon Smith, director of claims strategy at Carpenters Group, highlights that in 2024, insurers detected more than £1bn worth of fraudulent general insurance claims
At the latest Fraud Charter discussion, one question stood out for me. Are we seeing more fraud than ever before, or are insurers simply becoming better at identifying it?
The latest figures from the ABI underline the scale of the challenge. In 2024, insurers detected more than £1bn worth of fraudulent general insurance claims.
Motor claims accounted for a significant proportion of that total, showing that dishonesty remains a major issue across the market. One area causing particular concern is ghost broking. Social media has given fraudsters access to a much wider audience, allowing fake policies to be sold quickly and convincingly.
Research from Aviva shows the problem continues to grow, with many consumers discovering they have no valid cover only when something goes wrong. Rising detection figures can tell different stories.
They may suggest more people are attempting fraud. Equally, they may reflect improvements in the industry’s ability to uncover activity that would once have slipped through the net. My view is that both factors are probably in play.
Coordinated response
That is why the government’s fraud strategy is a welcome development.
Fraud costs the UK economy billions of pounds each year and tackling it requires a coordinated response.
Closer cooperation between insurers and UK police will be vital if we are to keep pace with increasingly organised criminal activity. Fraud is not a victimless crime. The cost is ultimately borne by honest policyholders, which is why the fight against it must remain a priority.
