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According to the Association of British Insurers (ABI), almost £1.16 billion worth of fraudulent general insurance claims were identified in 2024 – a 2% increase on the £1.14 billion found the previous year.
According to ABI data, insurers uncovered more than 98,400 fraud-related claims in 2024, up 12% from 88,100 in 2023.
Around 51,700 motor insurance scams worth £576 million were detected. This is 5% more than in 2023 and equal to more than half (53%) of the fraudulent claims found last year.
Insurers also identified 18,700 fraudulent property insurance claims worth £189 million – an 11% increase on the volume of claims detected last year.
Exaggerated losses, when claims are deliberately inflated beyond their true value, is a topic that insurers are looking at.
The ABI also said insurers prevented an estimated 684,800 fraudulent insurance applications last year, an increase of 7.4% from 2023.
mark allenThe head of fraud and financial crime at the ABI said: “It is reassuring to see the industry making continued progress in tackling fraud, but with insurers continuing to detect over £1 billion worth of fraudulent claims, the fight must continue and there will be no let up in the way insurers pursue fraudsters.
“Fraud doesn’t just harm its victims. It increases premiums for everyone and causes severe emotional distress.”
“That’s why cracking down on fraudulent claims and applications remains a top priority, but fraud cannot be tackled alone. It requires a collaborative approach with other sectors as well.”
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“A lot of fraud occurs on social media, and it is vital that technology companies and social media platforms work with us and play their part in prevention and detection.”
Ursula Jallow, director of the Insurance Fraud Bureau (IFB), said: “We are working closely with the ABI, insurers, law enforcement and other key partners to disrupt fraud and protect the public from scams.
“If you have any information about insurance fraud, we urge you to report it confidentially to our Cheatline.”