Insurance fraud is as old as insurance itself. There are always people who try to best the insurance companies by conning them. However, necessity dictates changes in each and every industry. And hence, in order to identify such professional fraudsters and the means they apply, the Insurance Fraud Register was brought into existence.
So What Is Insurance Fraud Register?
Also known as IFR, Insurance Fraud Register is the main industry-wide database of such people who are recognized as insurance fraudsters. It has been developed by the people in the insurance industry for their alma mater. The IFR is a tool that is considered to be not only effective but also strong and secure. It will hold identities of those people who were deceitful while applying or renewing a policy or while making a claim.
History of Insurance Fraud Register
Opportunists have always been lying in wait to scam the insurers. Their task was made even easier as the entire industry had no database of those fraudsters who did this repeatedly. As a result, the deception artists managed to acquire billions of dollars. To combat this situation the Insurance Fraud Register was rolled out towards the end of 2013. The ABI or the Association of British Insurers sponsors IFR on behest of its members. Today, it is accessible to well over 300 insurers.
Impact Of Insurance Fraud
Insurance fraud tends to have wide-reaching consequences. It impacts both the insurance companies and their customers. Insurance frauds not only results in loss of money to the insurance company but also, increases the insurance premium rates for the customers. So what exactly happens is that everybody lands up paying for the deceitfulness of some for no fault of their own.
Aim Of IFR
The IFR has three basic aims. These are:
- Shield honest customers.
- Detect frauds and prevent their recurrence.
- Discourage people from making false claims.
Why Is IFR Needed
Fraud of any kind is a criminal offense. Insurance fraud is no different. It is estimated that each year there are fraudulent insurance claims amounting to more than £2.1 billion. Such falsified claims add around £50 on each customer policy.
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