Zurich UK detected a 31% increase in fraudulent property claims during 2022 and a 7% rise in fake casualty claims. The insurer said its anti-fraud measures had prevented 3,460 bogus claims over the 12-month period, totalling £71.5m.

The insurer cited inflation as a contributing factor to the rise in fraudulent activity and highlighted the fact the Insurance Fraud Bureau had recorded a 17% increase in the number of names added to its register of fraudsters in the 12 months to July last year.

Scott Clayton, head of claims fraud at Zurich, said: “Households continue to face financial strains due to the cost-of-living crisis, and unfortunately this has led to an uptick in insurance fraud.

“Fraudsters are continually evolving in their methods, but so are we, and we now have more tools in our arsenal to detect fraud than ever before. Fraudulent claimants should be aware of the real-world consequences of their actions, which can include criminal prosecution and prison sentences for those caught.”

Detective Chief Inspector Tom Hill, from the City of London Police’s Insurance Fraud Enforcement Department, added: “We understand that the rising cost of living has presented challenges for many people across the country – but turning to crime is never the answer.

“Submitting a bogus insurance claim may seem like a victimless crime, but it in fact drives up the cost of premiums for everyone. As well as this, it could land you with a criminal record. Exaggerating or fabricating a claim may seem like a quick way to make money, but a conviction will have a lasting impact on your life.”

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