UK Insurance Fraud Unknown to Brokers
A research recently carried out by UK insurer Legal&General revealed that only a third of brokers clearly understand what fraud is.
As such, over a half of those questioned said that insurance policy holders can get away with inflated claims. Surprisingly 25% of brokers said that all home insurance claims are exaggerated by 25% and more.
Over than 65% of intermediaries think that it is impossible to eradicate fraud. As much as 75% of brokers are determined that it is the financial downturn that caused insurance fraud level to grow.
Experts at Legal&General were truly surprised with the results of the research. In response, they developed support material for brokers. It is now available at the Fraudstoppers website.
Mr. Phillips, who takes the post of general insurance head of fraud services at Legal&General said: “The direct contact and ongoing relationship that intermediaries have with their customers, means they are best placed to improve clients’ understanding of the implications of insurance fraud."
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I don’t know why it is surprising to L&G. In majority of the cases it is not the policyholders, but companies and tradesmen that carry out necessary work exaggerate their quotes if they know that an insurance company will be paying.