General Insurance Article - Comment on the report by the ABI on insurance fraud

 “We welcome the news that dishonest claims have fallen 8%, and that the number of staged accidents has also fallen sharply, by 22%. A twin strategy, where industry players share data to identify fraudsters, then offenders are prosecuted in the courts, is the best way to deal with this form of crime.”

 "This survey is a step in the right direction in painting a truer picture of the extent of fraud, but we urge the ABI to shine a brighter light on the statistics, for example by making a clear distinction between the level of actual fraud and suspected fraud. How many of the 67,000 ‘fraudulent’ motor insurance claims were suspected frauds?”

 "The definition of suspected fraud is too broad. For example, according to the ABI, suspected fraud occurs where a claims handler challenges the applicant to clarify key information or provide additional information or documentation. The claim is then badged fraudulent and continues to be defined as such if the claimant withdraws the application, fails to provide documents or ceases communication with the insurer. Maybe the claimant became fed up with the cumbersome process, or felt that the insurer’s requests for information was too much hassle. That is not fraud.”

 "We also call on the ABI to peer review its statistics, because this data is a significant factor in informing government policy decisions. An impartial peer review, say by the ONS, will ease concerns that ABI data may be used to further the interests of insurers, as opposed to the public interest."