The global rise of insurance fraud: a tale of two countries

Whilst insurers are already doing a lot to beat fraud, using a range of techniques to do so and often at significant financial cost, the Association of British Insurers believes that fraudulent insurance claims still cost more than £1.5bn each year. And, according to Mark Jones, managing director of Conversant Data, an anti-fraud outsourcing provider, there is every reason to believe that insurance fraud costs will continue to rise. Conversant Data’s own research indicates that as many as one in four motor, and almost as many as one in two home, claims contained an element of fraud. Whilst these figures are UK specific, the problem has no constraints or boundaries. Mr Jones says that eastern and central Europe, in particular, represents a huge region being targeted by fraudsters. Mr Jones cites specific examples from Poland where Conversant has recently opened an office

Interpol and Europol have, for many years, recognised the seriousness of international crime and the clear and tangible benefits of worldwide co-operation in helping fight it. Insurance fraud is also a serious international issue that is only now really starting to show evidence of being at the top of most Global insurers’ business agendas. Not only that, but at last the government too is finally sitting up and taking note of the wider scale issues it touches upon.