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According to a survey by the Association of British Insurers (ABI), British fraud levels fell for the fourth year running in 1996. A decrease of 4.5 percent was announced, based on an estimated 565 million pounds worth of fraud. (English to English translation: $928 million).
The most common type of fraud, accounting for nearly 40 percent, was inflated claims. Misrepresentation followed closely behind at about 30 percent. Decreases were noted in auto and homeowners lines; however, there were slight increases in the levels of fraudulent claims made under creditor and personal accident policies. There were 600,000 creditor insurance claims made in 1996 and 8.5 percent compared to eight percent in 1995were considered as fraudulent.
International fraud was of special concern fraud involving more than one country.
The survey placed the number of scams committed annually at 350,000, with automobile claims accounting for 150,000 of the total.
New database capabilities are credited for the decrease in fraudulent claims. Since its 1994 inception, the Claims and Underwriting Exchange has records on 1.5 million household insurance claims and 7.5 million auto claims. Another database, the Motor Insurance AntiFraud and Theft Register, compiles information on theft and total loss claims.
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