There were 125,000 dishonest insurance claims detected in the UK last year, with a total value of £1.3bn the equivalent of £25m every week, according to analysis by the Association of British Insurers (ABI).
This signifies a 5% fall on the amount identified in 2015, and a 3% reduction in value, with the industry increasingly clamping down on organised fraud-like 'crash for cash' staged motor insurance claims.
The Insurance Fraud Bureau (IFB) and Insurance Fraud Enforcement Department carries out this work, successfully exposing criminal gangs often linked to more serious crimes like money laundering and human trafficking.
"Fraud is harmful in a number of ways, including the real and present physical risk posed day in and day out to road users, alongside the financial impact on individuals and business alike," IFB director, Ben Fletcher, said.
"These reductions reflect the general trend that we have seen in organised motor scams and are a welcome reflection of the industry's efforts to tackle the problem year on year."
The level of organised fraud fell by around 30% last year, with 15,000 individual cases detected, while the number of motor frauds identified decreased 4% to 69,000.
There was also a slight reduction in cases of property insurance fraud found, dropping by 4% from 2015 to 26,000, however there was a rise in the amount of opportunistic motor insurance frauds detected.
These fraudsters are thought to generally be law-abiding citizens, but are often encouraged by disreputable claims management companies, with the increase thought to reflect a resurgence in whiplash-style claims.
This comes after the government announced a new Civil Liability Bill in the Queens Speech last month, which will ban offers to settle personal injury claims without the support of medical evidence.
"Opportunistic fraud has shown a small rise as people continue to be pestered by disreputable claims management firms that are helping fuel the compensation culture," ABI director of general insurance policy, James Dalton said.
"This makes it imperative that the government tightens regulation of claims management companies, and presses ahead with its further reforms on whiplash."
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