Serving you better: Insurance Fraud Task Force - the problem and conclusions
Thinkpiece
Publication date:
31 March 2016
Last updated:
25 February 2025
Author(s):
David Hertzell, Policy and Public Affairs
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 solutions.
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.
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.