The number of referrals to the Insurance Fraud Enforcement Department (IFED) relating to private medical and protection insurance has dropped by more than a third year-on-year.
This is according to City of London Police figures obtained by Health & Protection revealing the number of referrals made to IFED that relate to the private medical and protection sectors was down 35% year-on-year.
While in 2021 a total of 14 referrals were made, this number dropped to nine in 2022. Three referrals have been made for the year 2023 to date.
Fall in insurance scams
The figures follow the release of data from the Association of British Insurers (ABI) late last week indicating a fall in scams across the whole insurance sector uncovered last year.
While the number of fraudulent insurance claims uncovered last year was down 19% on the previous year, the value of the average scam increased to £15,000, up 20% on 2021.
The total number of fraudulent claims detected fell by 19% on 2021 to 72,600 cases. Of these, the number of opportunistic frauds decreased by 18% to 63,000 cases.
The ABI warned the drop in volume has to be viewed in the context of market developments.
In particular, there has been a 20% fall in the volume of fraudulent personal injury claims, largely as a result of the Official Injury Claim (OIC) portal reducing the overall number of small personal injury claims being made.
Motor insurance continues to account for the largest volume of fraud cases at 42,500, representing 59% of total insurance claims fraud.
While the volume of claims fraud fell significantly, the total value of claims fraud fell 4.0%, with the value of opportunistic fraud increasing by 2%, with a total cost to the industry of £1.1bn.
The average fraud rose to a record £15,000, up 20% compared to 2021.
The ABI added this in part reflects the rise in the value of property frauds, which rose to £134m, up 8.0% on 2021, and higher inflation.
Cases highlighted by the ABI included a man who was jailed for making bogus medical claims worth £24,000 against three insurers. These involved submitting fake receipts for non-existent medical treatments.
