Industry News from Yes Insurance

Insurers in the UK are stepping up the fight against fraud with the launch of an independent body that will deal with the crime.

The Association of British Insurers (ABI) has announced that the Insurance Fraud Bureau (IFB) will be launched as soon as July 26th, reports Reuters.

Its main aim will be to investigate fraudulent claims which cost the industry £1.5 billion per year.

The IFB will employ around a dozen people, working from a secret location, who will be looking through millions of insurance claims and checking for potential signs of fraud.

Files from car insurance and home insurance providers will be looked through as part of the crackdown on organised fraud, which is often linked to other serious criminal activities.

"Insurers are getting better at spotting opportunistic fraudsters, but there has been growth in organised insurance fraud which is premeditated and often carried out by criminal gangs who use the proceeds for other activities," said ABI spokesman Malcolm Tarling. "Insurance is often the tip of the iceberg."

The IFB will have to work through 160 million claims made to insurance providers, looking for possible fraudulent claims which may come in the shape of staged accidents or arson.

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