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False claims discovered by UK insurers fell by a tenth last year, a drop the industry has attributed to the spillover effects of closing business premises and shutting down drivers during pandemic restrictions.

Public insurers identified 96,000 fraudulent claims in 2020, the lowest number since 2007, according to the latest data from the Association of British Insurers. Mark Allen, chief fraud and financial crime officer at ABI, said government schemes also helped reduce numbers by easing financial hardship, which contributes to such attempts.

Autos, the largest segment, saw a 6 percent drop in fraudulent claims, which the business entity attributed to having fewer vehicles on the roads. The decline followed an overall decline in claims during the pandemic that has boosted profits for auto insurers.

Allegations of fraudulent travel have also subsided as a result of the pandemic, although the ABI has reported some colorful attempts, including a plaintiff who, when challenged, “tried to eat [the] False documents.” False liability claims have also decreased as businesses have had to close their doors during lockdowns.

Ben Fletcher, director of the Office of Insurance Fraud Prevention, a not-for-profit organization, credited collaboration within the industry to prevent insurance fraud “from rising as much as initially anticipated” during the pandemic.

The ABI added that the level of detected claims as a proportion of total claims rose slightly, while average value fraud increased 6 per cent to £12,000.

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