Caught out fibbing on an insurance claim? ...not likely say Britons

RSA survey reveals over half (56%) of Britons think it's unlikely people who commit insurance fraud will get caught.

But the possibility of a black mark on their financial record would make 78% of people think twice about committing fraud.

1.2 million Britons think it's not wrong to lie when making an insurance claim.

74% of Britons think committing insurance fraud could result in having their policy voided.

The insurance industry is cracking down harder on insurance fraud.

In the future, if a person is caught committing fraud other financial services companies will be informed.

Fraudulent insurance claims cost the industry over £1.5 billion a year.

Exaggerating or lying on an insurance claim may seem like a sneaky but harmless way of making some extra cash, but the reality is that consumers are now more likely to get caught than ever before and with increasingly serious consequences.

Insurer RSA's latest fraud survey assessed how likely Britons are to lie when making a claim together with general attitudes towards insurance fraud.

The survey revealed that 1.2 million Brits don't view this type of fraud as a serious offence.

Nearly half of those (40%) who think it's wrong to lie when making a claim, do so because they believe it's only a little fib.

The consequences of committing insurance fraud were also explored in the research.

It revealed that almost three quarters (74%) of those surveyed think committing insurance fraud could result in their policy being voided.

Additionally, almost two thirds (59%) realise that they may have to pay back previous claim payments with the same number realising that the fraud could result in them having to pay higher premiums.

These minor consequences may not deter the majority of people, but the possibility of a black mark on their financial record would make 78% of people think twice about committing fraud.

John Beadle, RSA's Counter Fraud Manager said: "The reality is that insurance fraud adds a significant amount to overall claim costs and it's the honest policyholders who are the true victims.

Fraud adds an additional 5% onto their insurance bills.

"Consumers need to be aware that in the near future we will be able to monitor fraud across a spectrum of financial products.

So if a person commits fraud on an insurance claim and is detected, other financial services companies, such as mortgage lenders and credit card providers, will know and that will have an impact on the success of their application." Fraudulent insurance claims cost the industry over £1.5 billion a year.

To counter this, insurers are making huge inroads in the detection and prevention of fraud through cross-industry efforts such as the Insurance Fraud Bureau (IFB) and investing in new technology that allows fraud data sharing.

In 2006, insurance companies detected and prevented more than £480 million of fraudulent general insurance claims - a threefold increase in the amount detected in 2003.

Anyone with information on a suspected insurance fraud can call the IFB's free, confidential Fraud Cheatline on 0800 328 2550.

For more information please speak to your usual RSA contact, or see our website, andnbsp;http://www.rsagroup.com.

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