Insurance fraudsters are eyeing bigger bogus payouts as false claims hit £1.3bn a year

From the Newshound archive · first published 6 October 2026.

Fraudsters are targeting larger individual insurance payouts, with the average bogus claim now reaching £14,300, new industry data reveals. False claims have surged to a total of £1.3bn, exposing the scale of organised fraud hitting British insurers and ultimately driving up premiums for honest customers.

The £14,300 average bogus claim marks a significant jump, suggesting fraudsters are becoming bolder and more sophisticated.

The £1.3bn total in fraudulent claims underlines how the scam is costing insurers — and by extension, ordinary policyholders — enormous sums every year.