Insurance cheats who make false claims could soon find themselves on a new industry black list.
A new database covering the entire insurance industry will let companies share claims information on their customers.
The insurance fraud register swings in to action with a six-month trial and i8s expected to go in to full operation during 2012.
The scheme was launched with a warning to cheats that they are under scrutiny from industry trade body the Association of British Insurers (ABI).
Nick Starling, ABI’s Director of General Insurance and Health, said: “This initiative demonstrates how seriously insurers take reducing insurance fraud, and their determination to protect honest customers.
“The database will build on existing industry databases that help insurers check previous claims history to ensure that there is no hiding place for anyone caught making a bogus or exaggerated insurance claim.”
The ABI reckons fraud costs the industry £2 billion a year, adding an extra £44 a year to the cost of insurance for every policyholder.
Funded by ABI members, the register will be an industry-owned database enabling insurers to share information on known cheats.
The database will enable insurers to identify anyone who fails to declare a previous fraudulent insurance claim.
A get tough campaign on insurance cheats is one way companies are looking to reduce the cost of claims.
David Neave, Chairman of the Insurance Fraud Bureau, (IFB) said: “This important initiative is the next key strategic step in strengthening insurers’ tough approach to this problem.
“The IFB is at the forefront of a concerted drive to tackle organised insurance fraud. The work of the IFB with insurers and police forces throughout the UK has led to the prosecution of many organised insurance fraud gangs, so helping save money for insurers and honest customers alike.”
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