Insurance fraud costs the industry an estimated £3bn a
year, plus another estimated £200m a year is spent combatting it.
The government's Insurance Fraud Task Force has come up with some
The Government established the Insurance Fraud Taskforce in
January 2015 on the basis of three major concerns: the cost for
honest policyholders, the erosion of social cohesion and trust if
fraud becomes widespread, and the diversion of the proceeds of
fraud to other criminal activity.
The Taskforce made a total of 26 recommendations and a series of
advisory comments, all across four broad topics: policyholder
understanding and education, the use and reliability of data, the
role of regulators and some specific personal injury issues.
There is no simple profile of a fraudster. However
fraudsters normally fall into two broad categories; organised
criminals and opportunistic chancers. There is also a grey
area of negotiation, error and misunderstanding which may not be
fraudulent but shows many similar characteristics.
We have an evolved privatised supplier market with specialist
law firms, claims management companies and medical experts.
An accident, as one consultee described it, has gone from being a
misfortune to a business opportunity.
The Taskforce recognised the importance of ensuring access to
justice and that in order to achieve this claimant organisation
must earn a reasonable profit in the absence of legal aid.
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