Lloyd’s Warns of Increases in Fraudulent Claims

Fraud is a fact of life for the insurance industry – part of the game so to speak. While some claims, as Lloyd’s notes in an article on its web site, may cause people to smile, the amount of money they cost the industry “is no laughing matter.” The current economic crisis has exacerbated the problem. Lloyd’s points out that “it is a well-known fact that the incidence of fraud – including general insurance fraud – climbs during a recession or economic downturn. This is a burden for insurers and customers alike as it can lead to higher premiums.”