Percentage insurance claims that are false?

Jun 16, 2008 3 Replies
C

I have receievd a letter which compares the rate of false reporting of some particular crime to the rate of false insurance claims.



I have no idea what sort of figure is generally accepted as the percentage of insurance claims which are false.



Are there any insurance industry figures about this?



I tried the insurance ombudsman's annual report but there was nothing there. The Association Of British Insurers website has a report on COMMERCIAL insurance fraud which refers to 15% false or exaggerated claims.



See



Is 15% a reasonable typical figure for false insurance claims?


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G

Would this include, or exclude, claims made honestly which don't comply with the small print of insurance policies?

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R

Of course it's not a reasonable figure. A reasonable figure would be zero. It may, however, be a reasonably accurate figure. :-) But I don't know.

What do you think about lumping "false" and "exaggerated" together? Whilst strictly an exaggerated claim is also false, the fact that they use both words means they make a distinction between claims which are merely exaggerated and those which are in some sense totally false. Once they do that, lumping them together is unhelpful. One would hope the totally false component would be very small indeed, e.g.

0.01% false and 14.99% exaggerated.
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C

Good point about how those statistics might be composed.

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