One of the UK’s largest insurers uncovered 11,000 bogus claims worth over 122m in 2021.
Aviva said that the proportion of insurance claims tainted with fraud grew 13 per cent in 2021, an average of 30 bogus claims, totalling 336,246, per day.
The insurer linked the increase in claims fraud last year to reduced incomes during Covid lockdowns and said it was investigating a further 16,700 claims for suspected fraud.
The number of detected application frauds – including ghost broking – remained high, and Aviva has warned consumers to be vigilant about unsolicited insurance offers from unusual sources.
Motor fraud accounted for 60 per cent of all claims fraud detected by Aviva.
The Whiplash Reforms, which came into effect a year ago, reduced compensation awards for minor whiplash injuries. They are expected to reduce the incidence of motor injury fraud, as the disproportionate compensation awards and fees are brought into line.
Aviva said motor injury fraud differed from other forms of fraud because it put the public’s personal safety at risk through deliberately organised accidents such as crash for cash, and diverts scarce public services – including the NHS, ambulance, police and GPs.
Aviva said there were early signs organised whiplash fraudsters were focusing their efforts on fraud connected with the repair aspects of a motor claim, including credit hire and repair, which grew by 13 per cent in 2021. Aviva witnessed particular growth in this area after the reforms came...
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