Firm urges clampdown on insurance cheats

Honest consumers with genuine insurance claims could be losing out as more people attempt to abuse the system amid the economic downturn, research has suggested.

Gordon Hannah, Director of Claims and Operations at insurance firm esure, said fraudulent activity could lead to increased premiums for honest UK motorists and homeowners.

His comments come after data published by the Association of British Insurers today showed that insurance fraud has increased by 24 per cent over the last two years.

Fraudulent claims include fabricating a car theft or writing off a car to get a cash settlement and adding expensive items such as a laptop or power tool to theft claims to cover the cost of a voluntary or compulsory excess.

But insurers are fighting back: Mr Hannah said cognitive interviewing is proving an effective way of exposing fraud during the claims process.

Suspicions are also raised if policyholders have mismatched addresses, credit card details or undisclosed claims, he continued.

"Insurance is there to help honest people with genuine claims and we're doing all we can to crackdown on people who are trying to abuse the insurance system in these difficult economic times," Mr Hannah added.