Insurance Fraud

A limited inquiry into how the British retail insurance industry manages fraudulent claims reveals a concentration of frauds in the travel, motor, and home and business contents sectors, with fire an increased hazard, especially in the latter case, where large sums are at risk. The Structure of British insurance in respect of fraud control is described, including the important role of loss adjusters, and a number of recent initiatives at industry level are discussed. These appear to indicate increasing recognition of the damage being done by insurance fraud but, for a variety of reasons, many companies are reluctant to take bold and public steps to combat fraud. Fears are widely expressed that public goodwill, and the relationship based on ulmost good faith, would be eroded by a more aggressive slance.