AXA and the British Insurance Brokers Association (BIBA) have teamed up to educate customers on the definition, consequences and wider impact of committing fraud.
AXA and the British Insurance Brokers’ Association (BIBA) have teamed up to educate customers on the definition, consequences and wider impact of committing fraud.
In a document Making fraud prevention clear, AXA and BIBA set out examples of fraud including making exaggerations on claims and failure to disclose relevant information.
It also explains the impact it has on premiums, the measures AXA takes to protect itself and customers from fraud and case studies of fraud AXA has encountered.
According to the document, the cost of fraud falls on AXA's genuine customers, adding at least £50 to every policy they buy.
Richard Davies, AXA's global chief fraud control officer, said: "AXA is committed to being as open and honest as possible with its customers and brokers and we have a responsibility to do that in every aspect of our operations, including fighting fraud.
"Of course detecting and prosecuting fraud is a vital element of tackling the problem but we need to go beyond this one-dimensional approach and focus on the source."
Steve White, chief executive of BIBA, said: "The cost of fraud to the industry runs into more than £2bn per year and affects what honest policy holders have to pay for their insurance. BIBA is committed to tackling and reducing this problem and this forms part of our 2015 manifesto. We applaud the initiative to help brokers to make clear to their clients the nature of insurance fraud."
Davies said he hoped the information would make people "stop and think before they make decisions that could have serious long-term implications for them".
"Fraud is one of the most potent threats facing the insurance industry and we must look to use every tool available to us to root it out and make our industry one of the most robust when it comes to fraud protection," he said.
"That includes giving our customers as much clarity as possible and we will continue to do that."