UK insurers spotted over £1.16 billion worth of fake insurance claims in 2024, according to the Association of British Insurers (ABI). That’s a slight rise from £1.14 billion the year before. The number of fraud-related claims also jumped, reaching nearly 98,400—up 12% from around 88,100 in 2023.
Most of this fraud happened in motor insurance. Insurers uncovered 51,700 fraudulent motor claims, adding up to £576 million. That’s 5% more than last year and makes up over half of all the fraud claims reported. Domestic motor insurance saw the biggest rise in fraud value, increasing by £36 million. Meanwhile, commercial policies stayed about the same.
Property insurance also faced a surge, with almost 19,000 fake claims valued at £189 million detected—an 11% increase from 2023.
One of the common tricks remains exaggerating losses, where scammers try to claim more than they’re entitled to. This type of fraud increased by 10%, totaling £466 million.
Fraud isn’t just about claims. Around 685,000 fake insurance applications were stopped, marking a 7.4% increase in attempts to provide false information when taking out policies.
Experts say the fraud problem is getting more complex, fueled by economic pressures and clever criminals. Dan Cicchetti from LexisNexis Risk Solutions pointed out how fraudsters are using digital means and encouraged better identity checks, email intelligence, and examining named drivers to catch fraud early.
The ABI also shared some specific cases. In one, a father and son sold fake car insurance policies using forged documents, making over £61,000 before being caught. In another, a man got 20 months in prison for multiple fake home insurance claims, repeating offenses over eight years under different names. Luxury watch fraud was tackled with a special operation at Heathrow Airport, where stolen or fake watches were identified and blocked from being smuggled overseas.
Mark Allen, head of Fraud and Financial Crime at the ABI, stressed that fighting fraud needs teamwork beyond the insurance industry. He pointed out that social media plays a big role in how fraudsters spread schemes, so tech companies must help stop it.
The City of London Police’s Insurance Fraud Enforcement Department is actively working to disrupt organized scams. Detective Chief Inspector Nik Jethwa highlighted recent successes and said their focus remains on stopping fraudsters and bringing them to justice.
Insurance fraud continues to be a growing challenge. While claims exceeding £1 billion is alarming, insurers are using smarter tools and cooperation across sectors to protect customers and the industry from these costly crimes.