The Association of British Insurers says there will be “no let-up” in efforts to combat insurance fraud after it identified more than £1.16 billion ($2.35 billion) of false claims last year. 

The total was up 2% on the previous year, and more than 96,500 fraud-related claims were recorded, up 12%.  

Motor insurance was the worst-hit line, accounting for more than 51,700 fake claims valued at about £576 million ($1.16 billion).

There was a 9% increase in the value of domestic motor fraudulent claims, while commercial motor was up 1.3%.

In property, more than 18,700 fraudulent claims totalled £189 million ($383.49 million).  

The association says the most common scams involved exaggerated losses, amounting to £466 million ($945.53 million).  

It notes insurers prevented an estimated 684,000 insurance applications in which people misrepresented or hid important information for financial gain.

ABI fraud and financial crime head Mark Allen says efforts to stop scammers “must continue”.

“Fraud doesn’t just harm its victims,” he said. “It drives up premiums for everyone and causes grave emotional distress. That’s why cracking down on bogus claims and applications remains a top priority, but fraud can’t be tackled in isolation.”  

Mr Allen wants a push to inform consumers about fraud tactics, warning criminal actors are increasingly using “more sophisticated, agile approaches, aided by AI”.

“It needs a collaborative approach alongside those in other sectors. A lot of fraud occurs on social media, and it’s vital that technology companies and social media platforms work with us and play their part in prevention and detection.”