UK Fraud Insurance Claims Rise by 14%

The latest report of the Association of British Insurers (ABI) confirms the recent speculations on the growing number of fraudulent insurance claims.

According to the ABI's report, the average number of fraud claims has already reached 2,300 a week or 9,200 a month. The estimations of the organization suggest that these claims account for more than £65 million a month or £800 million a year.

The statistics revealed by the Association of British Insurance covers the year of 2009 and shows a dramatic increase in fraud claims of more than 14% compared to 2008.

The major reason for the increase in the number of fraudulent claims is the economic recession. Industry experts are determined that the difficult financial situation in the UK made more people turn to illegal earnings. Another cause of the rise in fraud claims is the reluctance of insurance companies to take legal actions against fraudsters.

It is expected that those will be law-abiding citizens of the UK who will foot the bill in the near future.