Insurance watchdog gets up and running

Posted :26-07-2006

An independent body that will fight insurance fraud has been launched by the insurance industry, it was announced today.

The Insurance Fraud Bureau will work with the government and police to fight the ever-growing problem of fake insurance claims.

Consisting of anything from arson to faked motor accidents, insurance fraud costs the insurance industry a whopping £1.5 billion a year.

IFB deputy chairman and AXA fraud risk manager Richard Davies said: "The IFB will provide the framework that insurers can work within to collaborate when they have got problems they all face at the same time.

"As far as opportunist fraudsters are concerned, the industry has made great strives in the last couple of years in the way it manages opportunistic fraud."

An in-depth investigation into every major insurance providers database – over 160 million policies – will be the first measure the IFB takes, says the Association of British insurers.

On average, every insurance premium has a full five per cent added on to it because of insurance fraud, according to the BBC.


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