UK insurers set up fraud register as bogus claims rise
Source:Reuters Published: 2012-9-13 23:35:05
British insurers on Thursday launched a register of insurance fraudsters after calculating that bogus claims rose 5 percent last year, adding 50 pounds ($80.5) to the average policyholder's bill.
The register is designed to help insurers identify fraudulent claims, easing a financial burden that has weighed on the industry's profits, the Association of British Insurers said.
"The register will make it easier for insurers to prevent fraud by making details of known fraudsters available to insurers through a secure protocol," said Richard Davies of the ABI's Financial Crime Committee.
"Those that defraud insurers and their honest customers face real and tangible consequences for their actions."
Insurers detected 139,000 bogus claims in 2011, saving themselves almost 1 billion pounds of payouts, according to the ABI.