Insurance claims rise in the recession

According to the Association of British Insurers, the recession has sparked an increase in the number of fraudulent insurance claims.

Apparently around 107,000 claims totalling £730 million were false in 2008 - up 30% on 2007, with claims for Home Insurance representing more than 50,000 false claims detected last year. Although the highest by value were fraudulent car insurance claims, valued at £360 million.

The rise in fraudulent claims has been attributed to the recession, with an increasing amount of people seeking ways of obtaining cash. However, the ABI warns that “insurers are intensifying their crackdown on insurance cheats and that fraud adds an extra £40 a year to the average premium.”

Insurances claims rising in a recession?

Blimee - they'll be telling us that bears occasionally pop into the woods shortly!!