Household - Unsubstantiated claims

The household insurance market is being defrauded to the tune of £1bnper year by inventive and dishonest claimants. Michelle Worvellinvestigates what steps the industry is taking to bring unwarranted claimspayouts under control

Household insurance fraud is often viewed as a 'victimless crime' bythe general public - and as a result, it costs the industry £1bn everyyear, according to the latest ABI statistics. This depressingly highfigure is forcing insurers to fight a rearguard action to try to stem thegrowing tide of dishonest claims.

The initial problem is identifying the various types of fraudsters. Thereare, broadly speaking, three basic kinds:

- opportunists, who have a genuine claim, but who exaggerate to get