Aussie insurers must do more to combat car insurance fraud
“We know car insurance fraud is happening in Australia and it’s innocent policy holders that pick up the collective bill through increased monthly premiums. We want Australian insurers to follow in the footsteps of the UK and do more to crack down on these criminals that are stealing from us all,” said comparethemarket.com.au spokesperson Abigail Koch.
The extent of car insurance fraud in Australia is difficult to track as there appears to be a lack of coordination between insurers, and resource dedicated to combating the problem.
“You can see the difference in the two countries’ approach to fraud, simply by visiting their respective Insurance Fraud Bureau websites. The UK version is a mine of information about the impact of fake claims on honest customers’ annual premiums. There’s a real sense of collaboration from insurers and engagement with the public. We believe Australian insurers should aspire towards this model – by working together, and informing the public, they’ll be better positioned to combat car insurance fraud.
“In the UK, undetected general insurance claims fraud total £2.1billion* a year, adding on an average £50 to the annual costs of individual policy holders. This information isn’t readily available for Australia – and the prevalence of fraud could well be lower – but if it’s happening in the UK, then it’s probably happening over here as well.
“For the sake of hardworking Aussies that are seeing their household budgets squeezed from all directions, we’re calling on Australian insurers to work together to detect fake claims and stamp out car insurance fraud. It’s not fair that innocent motorists are picking up the bill,” added Abigail.