Last week’s launch of the Insurance Fraud Register (IFR) has given people and insurers the opportunity to avoid, prevent but essentially be aware of Insurance fraud that is costing the nation billions of pounds each year.

Insurance fraud is a serious crime and according to the ABI (Association of British Insurers), 71,000 frauds were detected last year. The average yearly cost to the insurance industry, and consequently its honest customers, is as much as £2.1bn. For example, one fraudulent claim involved a group of passengers on a coach who coordinated their efforts and made claims against the coach company when a staged road accident took place involving another vehicle. Fortunately, these people were caught and dealt with but there is much more fraud that takes place every year that goes unnoticed by authorities and it is part of the reason why insurance premiums are continuing to rise for UK customers.

Insurance fraud is all too common these days and it appears that Britain has a culture, attributed to a select few, for injury claims many of which are fraudulent. This has to stop as it is causing honest people to pay far too much for their insurance.

The IFR is essentially an industry-wide database of known insurance fraudsters. This knowledge helps prevent fraudsters from re-engaging in criminal activity, makes it easier for authorities to track them down when they do and to keep down the costs of insurance premiums for honest customers.

Over 300 insurers who are members of the ABI will have access to the database as it is rolled out in the next few months; a process that will be managed carefully by the IFB (Insurance Fraud Bureau), a company which was set up by the ABI to disrupt and coordinate action against people committing organised crime in the UK.