Fronting fraudsters in the firing line

The Insurance Fraud Bureau has identified over 17,200 motor insurance policies displaying signs indicative of policy fronting.

The policy holder details have been passed onto affected insurers to investigate further.

In a fronted insurance policy the named driver is in fact the main driver. Fronting occurs when an insurance consumer takes out a motor policy in their own name and adds a named driver who would normally, when taking out insurance in their own name, attract a rather higher premium.

Typically, fronted policies will involve parents insuring their children as named drivers in order to reduce the cost of insurance cover.

Nick Starling, director of general insurance and health at the ABI, said: “The vast majority of people who claim are honest, but insurers are determined to intensify their crackdown on the fraudulent few."

"Honest customers should not have to pay for the cheats. Anyone making a fraudulent claim stands a very good chance of being caught, collecting a criminal record and having problems in getting future insurance," Starling added.

Glen Marr, director of the IFB said: “The insurance industry is rightly intolerant of all forms of fraud, with the cost of fraud adding on average approximately £44 to every premium paid by honest insurance consumers each year. Genuine consumers and insurers should not have to subsidise the actions of fraudsters."