Detected and undetected fraud is estimated to cost European citizens 13 billion euros a year: examination of a community problem.
What concerns the overall volume of business, the black shirt belongs to the United Kingdom where undetected fraud is estimated to more than 2 billion euros, followed by Belgium and Spain with about 0.5 billion euros.
The percentage of dubious claims compared to the total number of claims in Europe can reach up to 10% of all claims expenditure, as estimated by the German insurance association (GDV) for Germany.
What concerns the average amounts of a fraudulent motor insurance claim, the United Kingdom is still leading this ranking as well. With 13’100 euros it ranks at the top of the pyramid, much more than for instance in France with 5’100 euros, Czech Republic with 5’000 euros or Spain with 3’700 euros.
Fraud has an impact on insurers but also on their honest consumers facing higher insurance premiums. Certain types of fraud put human lives at risk, such as “crashes for cash” or fraud-related fire-raising. And fraudsters are often linked to organized crime, so insurance fraud funds and facilitates other serious crime.
Therefore, the insurance industry is doing much to combat fraud in various ways: dedicated investigative groups, cooperation with law enforcement authorities, allocation of specialised anti-fraud trainings, use of technology and data analytics including anti-fraud databases, information campaigns. The national initiatives show many similarities.
Read more about the fight against insurance fraud from Insurance Europe!