Recently published data from the ABI (Association of British Insurers) suggest that we’re seeing a rise in a new kind of insurance fraud on the rise.  Fraudulent claims on pet insurance quadrupled in 2010 giving pet insurance the dubious honour of being the fastest growing insurance scam.

The ABI’s figures show that there was almost £2 million worth of fraudulent pet insurance claims last year. That’s up from just £420,000 in 2009. The tricks used by the fraudsters range from ID fraud (claiming for uninsured pets on the policies of other animals) to much more sinister tactics such as faked accidents, hoax kidnappings and, in extreme cases, killing the animal.

Fraudulent activity is a major concern for the insurance industry and is estimated to add an extra £30 on to every pet insurance premium. Pet insurance is proving to be a particularly difficult area for the industry to administer due to a lack of organization among vets and the absence of a central veterinary records bureau.