This booklet provides an overview of the type, scale and impact of insurance fraud throughout Europe. It also describes the insurance industry’s actions to reduce fraud. Reducing and deterring insurance fraud is a priority for insurers throughout Europe.
Insurance is based on the principle of mutual benefit and is designed to protect against significant, but uncertain, losses. Insurance fraud undermines this system, as fraudulent applications and claims deplete the funds paid in by the many honest customers to cover genuine losses. Fraud has an impact not only on insurers but also on their customers. It also has an impact on society in general because insurance fraud can be used to fund criminal activity.
Insurance fraud is not a victimless or insignificant crime. The vast majority of honest customers end up paying for the dishonesty of the few through higher insurance premiums. This is why the industry is determined to do all it can to reduce the problem.