According to the Government, the Insurance Fraud Taskforce was established to ‘investigate the causes of fraudulent behaviour and recommend solutions to reduce the level of insurance fraud in order to ultimately lower costs and protect the interests of honest consumers’. The much anticipated report prepared by the Taskforce (sponsored by the Treasury and the Ministry of Justice) was published today, setting out the group’s recommendations for tackling this increasingly high profile problem for the insurance industry.
The Taskforce is chaired by David Hertzell along with core member representatives from Association of British Insurers, Insurance Fraud Bureau, British Insurance Brokers' Association, Financial Ombudsman Service, Citizens Advice Bureau and Financial Services Consumer Panel. The Taskforce was assisted by a wide advisory group from law, academia and industry as well as establishing a Personal Injury Working Group, in which BLM took part.
The Taskforce focused on four broad topics – encouragement of fraud, drivers of policyholder behaviour, fraud deterrents in claims and application processes and data.
This report has highlighted the depth and scale of the insurance fraud problem, with effects experienced by both business and households across the UK. With billions being lost on an annual basis, insurers are already spending large sums on dealing with the problems caused by fraud, but loopholes in legislation continue to hamper their efforts.
Click here to read the recommendations of the report and BLM’s view.