Insurance News Archive

Communication between brokers and insurers 'could cut fraud'

Posted by Jonathan Walker

More communication between brokers and insurers could help to reduce fraudulent claims for things like property insurance, according to an expert.

Steve Foulsham, technical services manager at BIBA - the British Insurance Brokers' Association, said that a joined-up approach would help to identify people who may be committing the offence.

"If an insurer suspects fraud, the broker will know the client better because they are closer - and can disclose this to the insurer to make sure that the outcome is the right one," he explained.

Mr Foulsham said that there has been a rise in fraudulent activity, with people making inflated claims on property insurance, for example.

This is as a result of the recession, he suggested, as people are looking to make extra money in times of hardship.

Fraud costs the UK over £30 billion a year, according to the Association of British Insurers, representing an average £44 addition to costs per customer.

27 Jan 2010