Written evidence from the Association
of British Insurers (ABI)
In light of the report of the Transport Select Committee
which calls upon the insurance industry to do more to tackle fraud,
I thought you would be interested to learn that that the industry
has firmly committed to create a dedicated police insurance fraud
investigation unit and to set up an insurance fraud register.
These two initiatives will make it harder than ever to get away
with making a fraudulent claim and ensure that convicted fraudsters
face the full consequences.
The police unit will become operational on 1 January
2012. It will investigate specific insurance frauds referred to
it by insurers, regional police forces and the Insurance Fraud
Bureau. We are confident that the unit will deliver a step change
in enforcement activity against fraudsters, deter future offending
and reduce losses. It will also recover and return to the industry
assets lost to fraudsters under the Proceeds of Crime Act and
other civil measures.
The unit, which will consist of around 35 full-time
police officers and other specialised support staff lead by a
Detective Chief Inspector located at the City of London Police
headquarters, will operate routinely throughout England and Wales
with the ability on occasion to work in Scotland and Northern
Ireland. It will have access to wider police resources and capabilities
such as surveillance teams and forensic support. The establishment
of the unit will not mean that regional police forces will stop
investigating insurance crime, within their more limited resources.
The Insurance Fraud Register is an industry-owned
database that will provide a single platform to enable insurers
to share details on all known insurance fraudsters across insurance
sectors. It will become operational in early 2012. The register
is visible proof that the industry continues to strengthen its
controls against all types of fraud. In meeting the regulator's
expectation that the industry seeks to manage fraud on a collaborative
basis, it will enable the industry to provide consolidated data
to the National Fraud Intelligence Bureau.
The ABI will continue to work closely with the National
Fraud Authority and the Insurance Fraud Bureau to further develop
the industry's anti-fraud strategy. We would welcome the support
of the Transport Select Committee in sending public messages that
insurance fraud is unacceptable and will be tackled vigorously.
I will of course keep you and the committee in touch
with developments as we move towards full implementation early
in 2012.
July 2011
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