Insurance fraud could cause premiums to rise

Tuesday, April 13th 2010

Home insurance premiums could be on the rise due to the amount of fraudulent claims, according to an expert.

Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers Association, explains this is a matter of "serious concern".

"It's not fair on the majority that make fair and honest claims. They are the bad apples and something does need to be done about it," he claims.

And those who are found attempting to commit insurance fraud should be warned they will have difficulty in finding cover in the future.

Furthermore, this is a criminal offence and the fraudulent claimant could face prosecution, Mr Trudgill cautions.

The Association of British Insurers reported last month that insurers paid out £255 million to claimants following the bad weather seen last winter.

Some 66,000 claims were made - double the amount expected to occur due to weather damage.

Those who want to maximise their claims in a legal manner are advised by Mr Trudgill to negotiate with brokers, who can often alter their offerings.