Fraud Enforcement Gets Tough

The Insurance Fraud Enforcement Department (IFED) opened on 3rd January this month and aims to combat fraudulent claims,

a criminal threat estimated to be costing the UK economy £3 billion per year – adding on average £50 to each insurance policy.

Capital Fortune report that the IFED is an operationally independent unit run by the City of London Police and supported by the Association of British Insurers (ABI).Police detectives and financial investigators are already reviewing a number of cases including claims for buildings insurance, following referrals from the insurance industry at the end of 2011.

Nick Starling, the ABI’s director of general insurance, said: “Insurers are determined to protect honest customers by reducing insurance fraud particualtly in contents only insurance. This police unit is an important initiative as insurers intensify their crackdown on insurance fraudsters. The message could not be clearer: now more than ever everyone making a dishonest insurance claim is not only more likely to get caught, but risks getting a criminal record and certainly more expensive and harder to obtain insurance and other financial products in the future.”