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.

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Fraudulent insurance claims hit 'record £1.3bn'

The combined cost of fraudulent insurance claims reached a record £1.3 billion last year, according to an industry watchdog.

The most fraud committed was with fake car insurance claims, according to ABI. Credit: PA

Data released by the Association of British Insurers (ABI) said the annual cost of insurance fraud passed on to the customer was around £90 per head.

The body said there has also been a "significant" increase in people phoning up to report suspected fraudsters, indicating a growing acknowledgement that this is not a "victimless" crime.

Fraudulent motor insurance claims were the most expensive and common to be exposed, with 59,900 dishonest claims worth £811 million detected last year.

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