ABI: 'Never has it been harder to get away with fraud'

It has "never" been harder to get away with committing insurance fraud, according to an industry watchdog, who warned penalties were now "severe".

Aidan Kerr, the ABI's assistant director, head of fraud, said:

The message is clear: never has it been harder to get away with committing insurance fraud; never have the penalties - ranging from a custodial sentence and a criminal record to difficulties in obtaining financial products in the future - been so severe.

– Aidan Kerr

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Exposed insurance fraud claims 'worth £1.3bn'

The combined cost of fraudulent insurance claims hit a record £1.3 billion last year, industry watchdog, the Association of British Insurers (ABI) found. Fraud is estimated to add up to £90 to the cost of everyone's general insurance policies.