Report comment

Anon @ 13:48

That which can be asserted without evidence can be dismissed without evidence.

So let's see what inferences we can draw from the numbers we do have.

If a claim is fraudulent then there are no damages or costs paid, of course the D insurer would have to meet their costs, so assuming that these are £10k per case then there would be 33,600 cases per year with a finding of fraud.

From a mental run through of FOIL newstand over the last year or so i can think of a handful of prosecutions.

Of course there will be more findings of FD that don't result in a prosecution, but even if we look at the puff from the usual defendant suspects they're hardly announcing 100's of FD findings per week either.

So they can't be talking about cases where the claim was dismissed with a finding of FD or fraud. . . so what are they talking about?

Well could it be claims that they suspect to be fraudulent but can't prove so settle anyway?

The ABI acept, it seems that the cost of fraudulent claims is .17% (now considering few will be large loss or CAT claims and I suggest 99.99% will be submitted on the portal) as the number of claims submitted on the portal is c.700k per year then .0017 is 1190 fraudulent claims per year, but say we increase this to 1500 per year, for the cost to be £336M the cost of the average "fraudulent" claim would be £224k.

So in short, with some basic maths and logic, the claim as presented by the ABI / IFB can be demonstrated as without proper foundation.