Insurance Age

Fraud 'costs businesses 10 times more than fire'

AIG Europe (UK) has claimed that business losses from fraud and occupational crime cost 10 times more than losses arising from property damage through fire. According to its research, fraud is estimated to cost £32bn in the UK and is rising at 8% per annum.

While nearly all companies insure for property damage, the majority are still not insured against fraud, despite the fact that over half of companies with more than 1,000 employees report losses - the average being in the region of £1.2m.