Insurance fraud police unit was given of fund about £8.7m by ABI
The Association of British Insurers had to pay £8.7m to fund a specialist police unit so that insurance fraud could be opposed. In a year, The ABI would pay of fund about £2.9m to fully fund the unit for the next three years.
Therefore, it would have 35 specialist fraud detectives and the City of London’s economic crime directorate would operate it. The police told that the costs of insurance fraud industry was about £2bn in a year and consumers had to pay additional cost of £44 for each premium.
Adrian Leppard as City of London police commissioner said that in the past eight years, the banking industry had been rewarded for its investment in combating payment card fraud with savings of £370m, I hope to working with the ABI now, and the benefits of insurance industry in the same way could be ensured by the fraud authorities.
This unit would begin to operating in January 2012 and could be target fraud right across the sector. The arrangement would be reviewed after three years. A week ago, the ABI had announced a national insurance fraud register that enables insurers to share information on known those who were known to deceive the system.
