General Insurance Article - AA Insurance welcomes dedicated insurance fraud unit


 The AA's insurance director, Simon Douglas, has warmly welcomed the formation of a dedicated 35-strong insurance fraud unit by the City of London Police (announced today, 12 July).

 "We supported this proposal when it was announced late last year. Fraud costs around ?16 million per week* so we think the ?9m cost to establish the unit, which is being funded by the insurance industry, is a small sum to pay and it should very quickly demonstrate that this is a sound investment.

 "While we think it will initially concentrate on the most significant insurance fraud cases, of equal importance is the impact it will have on people's appetite to commit insurance fraud in the future."

 Simon Douglas points out that according to the AA's British Insurance Premium Index, fraud has put car insurance premiums under severe pressure, rising by an average of 40 per cent to the year ending 31st March.

 "Insurance fraud is not a victimless crime," he adds. "It doesn't just affect the industry; it affects consumers too who have to pay for the consequences.

 "It's vital that the unit is up and running and working effectively with the Insurance Fraud Bureau and the insurance industry as quickly as possible. Only then well we start to see a real impact on insurance premiums."

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