Birmingham’s motor insurance fraud shame


Birmingham was shamed as the place where most motor insurance fraudsters live for the fourth year in a row, according to the latest research.

The Motor Fraud Index shows that the West Midlands city accounted for 7.76% of all suspect motor insurance claims in England and Wales for 2012.

East London, Liverpool and Manchester were the next worst places on the list

The data was compiled from more than 24,000 suspected fraudulent claims referred to law firm Keoghs last year.

Although Birmingham topped the fraud list, the place where fraud climbed most last year was Crewe, Cheshire, which saw a 260% rise.

Other big increases were in Medway, Kent (145%) and Leicester s (58%), while Cardiff saw a 49% rise relating to a gang staging cash-for-crash accidents.

Biggest increases

Regionally, Wales and the South West both had 49% more fraud claims in 2012 compared with 12 months earlier.

Compared to the 2009 results, the figures also show the large spread of fraud over the last three years.

Now, just 12 of 104 postcode areas are considered low risk for motor fraud.

“The data reveals the ongoing and alarming spread of fraudulent motor claims outside of the more traditional hotspots,” said James Heath, partner and director of counter-fraud strategy at Keoghs.

“Only small areas of the UK are untouched by the problem of fraudulent insurance claims.”

Keoghs has been compiling the motor fraud figures for six, reporting all suspicious motor insurance claims handled in the past year.

The firm works with police to identify tools, technologies and procedures to counter fraud.

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