Industry not doing enough to tackle fraud - survey

Barely one in 20 insurance professionals believe that existing measures to tackle fraud will be enough to tackle the problem, according to exclusive Insurance Times research.

The survey shows that just 6% of respondents agreed that existing initiatives, such as the recent establishment of the Insurance Fraud Register and the anti-fraud police unit, will be sufficient.

They were outnumbered more than 11 to one by those (68%) who believe they will not be enough.

The survey was carried out to kick off the Insurance Times Fraud Charter, which is being carried out in partnership with AXA Personal Lines, aims to identify fresh measures for the industry to tackle the issue.

The survey also confirms industry concerns that the problem is on the rise with 70% reporting an increase in fraud over the past year.

Examining the social roots of the fraud epidemic, the survey shows that 64% believe it has become socially acceptable to submit a fraudulent claim.

On the question of application fraud, 40% of respondents have seen an increase in the problem over the past year, compared to 24% who have not.

But claims fraud is still seen, by a wafer-thin margin, as a more serious problem. Twenty-three percent of brokers said that claims fraud is a more serious problem, compared with 22% for application scams.

The survey also shows that 92% of brokers believe that professionals like doctors and solicitors, should be automatically struck if they have been found to have colluded in insurance fraud.

But the survey shows a balance in favour of the insurance industry funding the anti-fraud police unit, with 50% backing the idea compared to 43% against.

And it says 79% of respondents believe that insurers have encouraged the growth of fraud by being insufficiently willing to tackle low-value but suspicious claims.

Click here to find out more about the Insurance Times Fraud Charter 2012.