At the latest Joint Fraud Taskforce meeting, a new initiative aimed at reducing insurance fraud in the UK was unveiled. Known as the Insurance Fraud Charter, the scheme is designed to tackle rising levels of fraud that are costing the industry billions and driving up premiums for honest policyholders. The charter brings together insurance companies, law enforcement, and government agencies, strengthening the UK’s efforts to close fraud loopholes and better protect consumers.
Recent figures from the Association of British Insurers (ABI) reveal that in 2023 alone, 84,400 fraudulent claims were uncovered, with an estimated value of £1.1 billion, marking a 16% increase from the previous year. Notably, “crash for cash” scams, where fraudsters orchestrate accidents to make false claims, have become a growing problem, endangering innocent drivers and pedestrians alike. The Insurance Fraud Bureau (IFB) is currently investigating over 6,000 suspected motor insurance fraud cases, valued at more than £70 million.
The new charter, a voluntary initiative, seeks to bolster efforts across the insurance sector. Key objectives include improving data security, enhancing inter-agency collaboration, and advancing criminal justice measures. The charter pledges that the National Crime Agency’s National Assessment Centre will conduct an in-depth analysis of “professional enablers”—those who assist fraudsters by providing false evidence for claims. Additionally, the industry aims to target illegal insurance intermediaries who trick consumers with fake policies or claims.
Data protection enhancements form another critical part of the charter’s strategy, focusing on securing customer information from exploitation by fraudsters. Moreover, authorities will scrutinise fraudulent websites and advertisements that promote fake policies, aiming to prevent unwitting individuals from falling victim to these schemes.
Lord David Hanson, Minister of State at the Home Office with Responsibility for Fraud, emphasised the harmful effects of insurance fraud on society. “Fraud is an appalling crime, and we are determined to crackdown on these callous criminals,” he said. “Not only do honest customers face higher premiums, but these fraudsters have no regard for public safety when seeking profit. This charter is a critical step forward, and we will continue working with industry and law enforcement to better protect the public.”
Hannah Gurga, Director General of the ABI, described the charter as a necessary measure in the battle against fraud. “Insurance fraud remains an ongoing threat that corrodes trust in society and undermines our economic prosperity,” she stated. “This initiative requires a collaborative approach between the public and private sectors, and we look forward to implementing the commitments made in this charter.”
Temporary Assistant Commissioner Nik Adams of the City of London Police also highlighted the significance of the charter. “As the national lead force for fraud, we welcome this launch. Insurance fraud is not a victimless crime—it impacts premiums for honest customers and endangers lives on the roads. This charter is a key step towards a whole-system approach to combatting fraud.”
The charter, which has garnered support from key industry players including the British Insurance Brokers’ Association, Lloyd’s of London, and the International Underwriting Association, aims to cover the vast majority of the UK’s insurance sector. Taskforce meetings will continue to bring together government, regulators, and victim groups to further enhance protections for consumers and reduce the impact of fraud on society.
According to the latest Office for National Statistics (ONS) data, fraud is now the most common crime in England and Wales, affecting 1 in 16 adults in the year ending June 2024.
