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British fraud crackdown saves record sum

UK insurers uncovered fraudulent claims worth a record £1.32 billion ($2.78 billion) last year, up 3% from 2013, according to the Association of British Insurers (ABI).

About 130,000 false claims were submitted, up 9%.

ABI Director of General Insurance Policy James Dalton says the industry has invested heavily in anti-fraud resources.

“Insurers are determined to do whatever it takes to identify and take tough action against fraudsters, to protect their honest customers,” he said. “Insurance cheats are now more likely to get caught than ever before… and face long-lasting and serious consequences.” 

He says without such vigilance, genuine customers will suffer higher premiums.

“The vast majority of customers are honest, and should not have to pay for the fraudulent minority. Honest customers rightly expect nothing less.”

Motor claims accounted for most scams last year, with 67,000 cases worth £835 million ($1.76 billion), up from 59,900 cases worth £811 million ($1.71 billion) in 2013.

Liability insurance rorts increased 75% to 19,800 cases worth £330 million ($696.29 million), while property insurance fell 29% to 24,533 claims worth £108 million ($227.88 million).