Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • April 2016
04

Birmingham capital for 'crash for cash'

Open-access content Tuesday 5th April 2016 — updated 5.50pm, Wednesday 29th April 2020

Birmingham has the highest number of motor fraudulent claims, according to Aviva.

2


The insurer, which detected more than 3,000 of these claims last year, said 25% of these cases occurred in Birmingham. This was up from 19% in 2014. 

East London had a "rapid growth" for crash for cash incidents, making it the third worst area in the UK, despite not appearing within the top 10 locations the previous year. Coventry and Oldham, also new entrants, came 9th and 10th respectively. 

Manchester, Slough and Uxbridge, which appeared in the 2014 list, dropped out of the top 10 ranking. 

"Manchester has long been associated with crash for cash, and its absence is good news for local motorists," Aviva said. 

The figures include both induced accidents, where fraudsters deliberately target innocent drivers in order to claim whiplash compensation, and those that are 'staged', when two damaged cars are brought together to make it look like an accident. 

Induced accidents reduced by 2% from 2014, while staged ones fell by 40%. Aviva said this was due to tougher fraud prevention tools at the point of sale.

But motor fraud remains the largest type of scam detected by the firm, representing 60% of all claims with a value of £58m. 

Tom Gardiner, head of fraud at Aviva, said: "Crash for cash does not just push up premiums for genuine customers, it puts innocent motorists at risk. 

"Induced accidents remain a serious concern for all road users. However, as our figures show, we are getting better at detecting, declining and prosecuting these claims, but urgent reform is needed to remove the root cause of the problem, which is easy access to compensation and profits."


2015 Top 10 crash for cash locations, with 2014 ranking in brackets:

1. Birmingham (1st)

2. North London (3rd) 

3. East London (new entrant)

4. Leeds (5th) 

5. Harrow (7th)

6. North West London (8th)

7. Bradford (9th)

8. Luton (2nd)

9. Coventry (new entrant)

10. Oldham (new entrant)

This article appeared in our April 2016 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Demand for transactional risk insurance grows by 32% in 2015

The use of transactional risk insurance for mergers and acquisitions (M&A) continued to increase globally during 2015, according to a report published by Marsh.
Friday 8th April 2016
Open-access content
2

Nuisance callers required to display numbers under revised legislation

Cold callers will no longer be able to hide or disguise their numbers following new rules to crack down on nuisance calls.
Monday 25th April 2016
Open-access content
2

Customer satisfaction in insurance tops ranking in UK

The UK has the highest level of customer satisfaction in the insurance industry, according to a report published by the Institute of Customer Service.
Thursday 28th April 2016
Open-access content
2

Churchill unveils drivers' excuses for not having car insurance

Motorists who are caught without cover use a range of excuses to avoid being prosecuted, according to Churchill Car Insurance.
Friday 29th April 2016
Open-access content
2

The uncertain world of pricing

Edward Tredger considers whether a Bayesian framework can help actuaries manage pricing in an uncertain environment
Thursday 31st March 2016
Open-access content
ta filler

Microinsurance: showing potential

Jeff Blacker, Henry Yan and Eamon Kelly look at microinsurance and explain why it is an interesting and rewarding alternative to more conventional areas of insurance
Tuesday 29th March 2016
Open-access content

Latest from General Insurance

td

Brain power

The latest microchips mimic cerebral function. Smaller, faster and more efficient than their predecessors, they have the potential to save lives and help insurers, argues Amarnath Suggu
Wednesday 1st March 2023
Open-access content
bl

'Takaful' models of Islamic insurance

Ethical, varied and a growing market – ‘takaful’ Islamic insurance is worth knowing about, wherever you’re from and whatever your beliefs, says Ali Asghar Bhuriwala
Wednesday 1st February 2023
Open-access content
il

When 'human' isn't female

It was only last year that the first anatomically correct female crash test dummy was created. With so much data still based on the male perspective, are we truly meeting all consumer needs? Adél Drew discusses her thoughts, based on the book Invisible Women by Caroline Criado Perez
Wednesday 1st February 2023
Open-access content

Latest from April 2016

2

Actuary warns lifetime ISA will 'progressively choke off' pension saving

Lifetime ISAs ‘sit uncomfortably’ with auto-enrolment, according to the chairman of the Association of Consulting Actuaries (ACA).
Friday 29th April 2016
Open-access content
2

Active management helps investors gain extra returns, says actuarial firm

Greater reliance on active managers could help grow investment funds, according to Spence and Partners.
Friday 29th April 2016
Open-access content
2

TPR to list group personal pensions open to all employers

The Pensions Regulator (TPR) is to publish a list of group personal pensions (GPPs) open to any employers seeking to comply with their automatic enrolment duties.
Wednesday 27th April 2016
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 04

2

Actuary warns lifetime ISA will 'progressively choke off' pension saving

Lifetime ISAs ‘sit uncomfortably’ with auto-enrolment, according to the chairman of the Association of Consulting Actuaries (ACA).
Friday 29th April 2016
Open-access content
2

Active management helps investors gain extra returns, says actuarial firm

Greater reliance on active managers could help grow investment funds, according to Spence and Partners.
Friday 29th April 2016
Open-access content
2

TPR to list group personal pensions open to all employers

The Pensions Regulator (TPR) is to publish a list of group personal pensions (GPPs) open to any employers seeking to comply with their automatic enrolment duties.
Wednesday 27th April 2016
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

BPA Transition Manager

London, England / Edinburgh, Scotland
£45000 - £65000 per annum + market leading bonus and benefits
Reference
148878

London Market Pricing Contracts - Inside & Outside IR35

London (Central)
£1000 - £1300 per day
Reference
148877

SME Pricing Director

London (Central), London (Greater)
£225K + bonus + benefits
Reference
148872
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ