Liability fraud on the rise claims Keoghs

29/07/2010

Fraudulent liability claims are rising sharply according to Keoghs, which has found a 150% increase in the volume of suspicious liability claims it has investigated over the past 12 months.

According to the law firm’s research, the number of potentially fraudulent claims involving low-speed vehicles increased by 63% compared with last year.

Keoghs claims that it managed to save its clients £65.5m over the past 12 months â a 39% increase in the sum for 2008.

James Heath, Keoghs director of counter-fraud strategy, told Post the recession and improved detection techniques were driving the increases.
He added: "The totality of the problem of fraud remains an unknown-unknown. We don’t know whether the increase in fraud committed is continuing or whether the increase in identification is catching up with it.

The more insurers tackle fraud collectively, as an industry, the amount of fraud committed will hopefully peak and eventually fall.

“If insurers can continue to produce good detection rates, hopefully we will get on top of the problem in the future.”

Last week, the latest AA British Insurance Premium Index identified fraud as one of the major reasons behind a record 11.5% quarterly increase in car insurance premiums.

Original Article: Post