What is the Insurance Fraud Bureau (IFB)?
The IFB is a not for profit organisation funded by the insurance industry, specifically focussed on detecting and preventing organised and cross industry insurance fraud.
Why was the IFB formed?
Organised fraudsters increasingly use insurance as a way of making money, and the industry has agreed that the best way of dealing with the problem is for all insurance companies to work together.
How much does insurance fraud cost me?
The Association of British Insurers (ABI) estimates undetected general insurance claims fraud totals £2.1bn a year and adds around £50 to the annual cost of household insurances. The IFB estimates the cost of fraudulent organised motor insurance claims alone is £392m each year and that 1 in 7 personal injury claims is connected to a suspected ‘Crash for Cash’ scam.
What is organised insurance fraud?
Insurance fraud is becoming increasingly complex. Induced motor accidents are an example of organised fraud, which is where an innocent motorist is forced to crash into the back of the fraudster’s vehicle. Claims are then made against the innocent motorist, and these often including accounts of fictitious injuries from gang members, some of whom may not even have been involved in the accident. In many cases these criminal gangs have bogus claims running with numerous insurers at the same time. Other examples of organised insurance crime include fraudulent arson or disability claims and supplier fraud, where insurers receive bills for work that has not been done. More background information on the IFB can be found here.
Who are members of the IFB?
The insurer members of the IFB manage in excess of 95% of UK personal lines claims. All IFB members also share their claims data via the Claims and Underwriting Exchange, known as CUE.
The IFB membership is constantly growing, with self insured companies, compensators and local authorities joining every day. Please click here to see a list of current IFB customers.
If you are an authorised insurer, self insured, compensator or third party administrator and interested in participating in IFB services, then please contact us here.
What type of fraud does the IFB investigate?
The IFB currently focuses on personal lines: motor, home, personal injury claims. Insurers are investigating the feasibility of extending this scope into other organised crime risks.
Who does the IFB work alongside?
The IFB is aligned with Government objectives to protect all individuals and businesses from the effects of organised crime. The IFB is currently working in conjunction with UK police forces and other investigating agencies, as well as some of their international counterparts.
The ABI works with the IFB to raise public awareness of fraud, citing IFB successes and promoting a free and confidential 'Cheatline' service.
What can I do if I suspect someone I know is involved in or has been a victim of Insurance Fraud?
If you suspect that you have been involved in an induced or staged accident, then please contact your insurer in the first instance. Please also click here to see our advice for drivers, which gives indicators as to whether or not fraud may have taken place. Continue reading…