FraudNews
02-18-2012, 07:00 AM
Research by AXA, a leading british home insurer, suggests that the tough economy may be to blame for the increase in over-inflated home insurance claims.
According to Axa, more and more britons experiencing unemployment and higher living costs, the insurance industry is a significant target for such “scams”. In the past year, claims on homeowners’ insurance have surged by 17 percent with approximately 200,000 consumers adding an additional £607 to the claim. According to the study, nine percent of folks who made a claim within the last five years had exaggerated the damage.
Many of these exaggerated claims involved cash, jewelry and televisions (most often seen right before a big sports event). Often, these things never existed for the household. Also, people claimed they had designer goods when they actually had fakes and folks would make claims that their freezer was filled with high priced meals rather than the basic TV dinner type foods.
Axa said other home insurance companies were experiencing the same problem. According to the survey, 45 percent of folks (less than half) believe an exaggerated claim is being dishonest and more than one in 10 folks would likely “inflate” their claim.
The company also learned that men were twice more likely to make exaggerated claims than women were. About 12 percent of men who made claims said they stretched the truth. This is compared to just six percent of women.
Axa’s Head of Fraud Steve Gaywood said the industry is quite aware of these things and are implementing all kinds of measures all the time to lessen the number of fraud taking place.
Gaywood said if consumers are caught in the fraud, they could have the whole claim dismissed and face additional problems of getting insurance later on. He said exaggerated claims are not a victimless crime because it’s the honest customers who foot the bill by way of higher premiums.
Axa said these kinds of claims can add an additional £13 to all home insurance policies.
According to Axa, more and more britons experiencing unemployment and higher living costs, the insurance industry is a significant target for such “scams”. In the past year, claims on homeowners’ insurance have surged by 17 percent with approximately 200,000 consumers adding an additional £607 to the claim. According to the study, nine percent of folks who made a claim within the last five years had exaggerated the damage.
Many of these exaggerated claims involved cash, jewelry and televisions (most often seen right before a big sports event). Often, these things never existed for the household. Also, people claimed they had designer goods when they actually had fakes and folks would make claims that their freezer was filled with high priced meals rather than the basic TV dinner type foods.
Axa said other home insurance companies were experiencing the same problem. According to the survey, 45 percent of folks (less than half) believe an exaggerated claim is being dishonest and more than one in 10 folks would likely “inflate” their claim.
The company also learned that men were twice more likely to make exaggerated claims than women were. About 12 percent of men who made claims said they stretched the truth. This is compared to just six percent of women.
Axa’s Head of Fraud Steve Gaywood said the industry is quite aware of these things and are implementing all kinds of measures all the time to lessen the number of fraud taking place.
Gaywood said if consumers are caught in the fraud, they could have the whole claim dismissed and face additional problems of getting insurance later on. He said exaggerated claims are not a victimless crime because it’s the honest customers who foot the bill by way of higher premiums.
Axa said these kinds of claims can add an additional £13 to all home insurance policies.