People will do some awful things for money and not think twice. Committing home insurance fraud is one of those things, according to
According to the research, almost one-third of Brits believe that it's acceptable to commit home insurance fraud. Legal & General broke down the age groups of those who believe it’s acceptable to exaggerate a house insurance claim.
• Ages 16-24: 37.5%
• Ages 25-34 41.6%
• Ages 35-44 32%
• Ages 45-54 29.2%
• Ages 55+ 18.9%
The report concludes that these numbers reveal that attitudes toward insurance fraud have softened through the generations and—in part—explains why the problem is on the rise.
The report found that a key reason for people to misrepresent the stolen contents in their home is in an effort to get the latest technology. The “FraudStoppers Report” found that men are twice as likely to exaggerate a claim to get a new gadget, such as an iPhone or plasma television, as women (13% compared to 6%). “Men are also more blasé when it comes to insurance fraud, with almost three times more men than women confident they’ll get away with an inflated claim—13% of men, compared with just 5% of women,” the report states.
The UK-based insurer says brokers and advisers need to play a larger role in tracking down fraud. A survey of insurance intermediaries conducted as part of the FraudStoppers Report found that more than half (57%) were confident that a customer could get away with an inflated claim. Yet, at the same time nearly three-quarters (73%) of brokers and advisers confess that they have no processes in place to help identify and prevent home insurance fraud.
Many of those surveyed who have processes in place mentioned that these included checking previous insurance cover records and claims history, as well as stressing the importance of educating their clients on what constitutes home insurance fraud and the implications of making a fraudulent claim.
“If [brokers and advisers] can contribute to their customers’ understanding of what constitutes insurance fraud, the implications and how it will impact them, they can help to reduce exaggerated claims and prevent their clients from being added to the insurance industry’s fraud databases,” the report states.
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