“As well as bogus insurance claims inevitably increasing premiums for honest customers, certain tactics used by fraudsters, such as ‘crash for cash’, put the lives of innocent members of the public at serious risk.”
He added: “The fight against insurance fraud is an ongoing one, so we need to continue working together to prevent and detect this crime type, and ultimately bring the criminals involved to justice.”
Analysis from the ABI has found that motor insurance fraud remains the most common type of insurance scam in 2020.
Fraudulent claims were up six percent compared to data from 2018 although total payouts have fallen slightly.
Mark Allen, ABI’s Manager of Fraud and Financial Crime has warned that genuine customers would end up “footing the bill” for illegal activities.
He warned customers would pay “through their insurance premiums” which are often increased to pay for debts owed through false claims.
Mr Allen has warned that customers should remain “on their guard” to prevent being unfairly caught up in illegal activity.
He said: “The industry makes no apology for its relentless pursuit of insurance cheats, to protect genuine customers, who end up footing the bill through their insurance premiums.
“Insurers will not hesitate to ensure that fraudsters seeking to profit at the misery and expense of others will suffer severe and long-lasting consequences.
“Insurers know that the Coronavirus crisis has led to financial hardship for some, and with scammers always preying on people’s anxieties.
“Now it is especially important for consumers to be on their guard, for scams like being approached by someone offering cheap motor insurance.
“The golden rule is never act in haste – if a deal is too good to be true, then it probably is.”