A briefing summarising the detailed findings and recommendations
of a task force looking into insurance and claims fraud.
On 18 January, HM Treasury published the final report of its
Insurance Fraud Task Force, chaired by former Law Commissioner
David Hertzell. Insurance fraud is a serious issue, which has been
estimated to cost policyholders up to £50 each per year, and the
country more than £3 billion, not to mention time spent by the
legal and medical services in dealing with these cases.
The task force explores relevant issues including the scale and
impact, regulators and legal frameworks and what has already been
done to tackle fraud, before making a range of targeted
recommendations, that aim to:
- tackle fraudulent activity ranging from organised or
premeditated crime to opportunistic fraud, with the overall
objective of ultimately reducing costs for consumers.
- improve consumer trust in the insurance sector and raise the
public profile of insurance fraud as a criminal activity;
- encourage greater use of data sharing and collaboration between
the insurance sector and regulatory bodies to better prevent
organised insurance fraud; and
- reflect and support the government's intentions to clamp down
on unnecessary whiplash claims, which are a major source of fraud,
and strengthen regulation of claims management companies.
Next Steps: the Government and relevant trade associations and
professional bodies will review the recommendations and feed back
over the next several months.
View the attached report »