Lloyd's commits £200,000 to police fraud unit

The insurance fraud enforcement department (IFED) is to hire three new officers after receiving financial backing from Lloyd’s.

Lloyd’s will invest more than £200,000 in the City of London police unit, the 35-strong industry-funded squad dedicated to tacking insurance fraud in England and Wales.

IFED was launched in January 2012 and already receives £3m a year from a compulsory levy on ABI members. The ABI has committed to finance the unit until a review in December 2014.

City of London police commander Steve Head, said: “Since launching IFED we have delivered on our promise to make England and Wales a more hostile environment to commit insurance fraud. We have investigated millions of pounds worth of insurance scams, made hundreds of arrests, secured a growing number of convictions and, in the process, we are changing the public perception that insurance fraud is not a real crime with little chance of being caught and few consequences for those who are.

“Lloyds pledging funding provides further industry recognition that we have delivered for insurers and will enable us to make an even greater impact in the future by expanding our team and working with different insurers covering a variety of markets and products.”

Lloyd’s director of risk management and general counsel Sean McGovern said: “Insurance fraud is a crime that costs the industry hundreds of millions of pounds every year and has a negative impact on honest customers. We’re pleased to support IFED in helping reduce this crime.”