About Us

The Dynamic Fraud Environment

  • Insurers are alive to the fraud challenge. In 2005 insurers exposed and stopped frauds worth over £400 million; an increase of 50% on 2004. But insurance fraud is becoming increasingly complex and in some cases, criminal gangs are putting innocent policyholders’ lives at risk.
  • Insurers encounter a wide range of fraud. At one end of the scale there are opportunists; policyholders who exaggerate claims. At the other extreme, frauds are organised and pre-meditated, planned by criminal gangs with the proceeds often used to fund other criminal activity.
  • Induced motor accidents are an example of organised fraud, whereby an innocent motorist is induced to crash into the back of the fraudster’s vehicle. Claims are made to the innocent motorist’s insurer, often including several accounts of fictitious injuries from gang members. Other examples include fraudulent arson, fraudulent disability claims and supplier fraud where insurers receive bills for work that have been exaggerated or not done. In many cases these criminal gangs have bogus claims running with numerous insurers at one time.

Shaping The Future – The IFB

  • Following a successful 6 month pilot, the launch of the IFB in July 2006 highlights the appetite within the insurance industry to work collaboratively and with the police and law enforcement agencies to combat the fraud challenge. Insurers handling 95% of the UK’s personal lines claims are participants in the IFB service.
  • The IFB analyses the details of insurance policies and claims records of all participating insurers to identify suspicious activity. It then leads or co-ordinates an investigation with the effected insurers to expose fraudsters and bring them to justice, recovering fraudulent monies paid out and seeking criminal prosecution.
  • The IFB operates the Fraud Cheatline. Anyone with information on suspected insurance fraud can call this free and confidential helpline. The Cheatline number is 0800 328 2550.

Insurers working in partnership with the police and policyholders can beat the fraudsters and protect the honest policyholders.