Insurance EuropeInsurance Europe

Insurance fraud is not a victimless or insignificant crime

Insurance fraud affects not only insurers but also consumers, since the vast majority of honest customers end up paying for the dishonesty of the few through higher insurance premiums. Insurance fraud also has an impact on society in general because it can be used to fund criminal activity. This is why the industry is determined to do all it can to reduce the problem.

Detected and undetected fraud is estimated to account for up to 10% of all claims expenditure in Europe. This figure varies between countries and classes of insurance due to a number of factors, such as how the market functions or the local prevalence of a particular type of insurance.

The insurance industry’s response to fraud includes the exchange of information between insurers and co-operation with law enforcement agencies. Insurers continue to strengthen systems and checks to ensure that all types of fraud are detected and prevented to minimise the impact on honest customers. 

Insurance fraud: not a victimless crime (publication)

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Nicolas Jeanmart
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Head of personal & general insurance
Charles Low
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Policy advisor, general insurance