Zurich UK, one of Britain’s biggest insurers, said the cost-of-living crisis is fueling a rise in insurance fraud, where people exaggerate or create claims for items such as jewelery and electrical goods. The company said the number of fraudulent property claims from January 1 to May 31 this year was 25% higher than the same period in 2021. Over the five months, the insurer prevented a total of £4.2m of fraud – up from £3.3m in 2021. Zurich said this equated to around £40,000 every working day. High-value jewellery, mobile phones and televisions were among the most common items reported to have been lost, stolen or maliciously destroyed. The average value of a fraudulent home insurance claim was £8,800. In one case highlighted by Zurich, a cyclist raised suspicions after making a £1,000 claim for a stolen bike minutes after buying an insurance policy. But she was disturbed when cellphone video revealed the alleged thief riding away on the bike 45 minutes before taking off the cover. In another case reported by the insurer, a DIY enthusiast attempted a £3,000 claim for the theft of his tools. When asked to provide photos of the items, the man shared a photo of himself with them, only for the date showing it was taken after the theft was alleged to have taken place. The man also claimed bicycles worth £2,000 had been stolen from his garden. They were later found by the police in his shed. Zurich said many more people were struggling as a result of soaring food, energy and fuel bills, which contributed to the rise in fraudulent claims. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk DCI Tom Hill, from the City of London Police’s insurance fraud enforcement unit, said: “We understand that the rising cost of living has made the last few months particularly difficult for many people across the country – but a turn to crime is never the solution. “ He added that while filing a false insurance claim “may seem like a victimless crime,” it actually raised the cost of insurance premiums for all consumers. Additionally, it could leave the person with a criminal record. “Exaggerating or fabricating a claim for an expensive watch or television may seem like a quick way to make money, but a conviction will have a lasting impact on your life,” Hill said.
