In January 2016 the Insurance Fraud Taskforce produced its final report into the serious issue of fraud in insurance, a problem which is reported to cost more than £3bn each year.
The proposals made in the report are wide-ranging, but perhaps the most significant are recommendations that:
- seek to encourage the extent to which insurers share data in relation to fraudulent claims and improve the quality of the data available in shared databases;
- aim to tackle fraudulent claims in relation to noise induced hearing loss – the Insurance Fraud Taskforce endorsed the current investigation by the Civil Justice Council in relation to a possible fixed cost regime in respect of NIHL claims;
- call for the regulations governing claims management companies to be strengthened; and
- seek to ensure potentially fraudulent personal injury claims are defended more robustly – the Insurance Fraud Taskforce recommends that the ABI discourage inappropriate offers to settle made before medical evidence is produced.
A full version of the report can be viewed here.