Dedicated insurance fraud unit

AA Insurance supports new police initiative

12 July 2011

The AA's insurance director, Simon Douglas, has warmly welcomed the formation of a dedicated 35-strong insurance fraud unit by the City of London Police.

It's vital now that the unit is up and running and working effectively with the Insurance Fraud Bureau and the insurance industry as quickly as possible. Only then well we start to see a real impact on insurance premiums.

Insurance fraud is not a victimless crime. It doesn;t just affect the industry - it affects consumers too who have to pay for the consequences.

Simon Douglas, AA Insurance Director

Fraud costs around £16 million per week so we think the £9m cost to establish the unit, which is being funded by the insurance industry, is a small sum to pay and it should very quickly demonstrate that this is a sound investment.

The new unit will initially concentrate on the most significant insurance fraud cases, but of equal importance is the impact it will have on peoples' appetite to commit insurance fraud in the future.

Simon Douglas points out that according to the AA's British Insurance Premium Index, fraud has put car insurance premiums under severe pressure, rising by an average of 40% to the year ending 31st March.