Launch of insurance fraud register

The insurance industry has launched an insurance fraud register which will contain details of all known insurance fraudsters through a secure protocol, making it easier for insurers to prevent fraud. Reporting this, Fleet News noted that fraudulent whiplash claims contributed to a 2% rise in motor insurance fraud last year, 

The Association of British Insurers’ latest report on insurance fraud identifies that in 2011, 7% of all motor insurance claims were fraudulent compared to 5% in 2010.The ABI says that this reflects the rise in fraudulent whiplash claims, often encouraged by a small minority of corrupt professionals.

ABI showed that dishonest motor insurance claims were the most expensive with savings of £541 million made from the 45,000 bogus claims uncovered. Fraudulent whiplash claims was the main factor for the rise.