Not a victimless or insignificant crime

Insurance protects against significant but uncertain losses through the pooling of risk. Insurance fraud — whether organised or opportunistic — undermines this pooling system because it depletes the funds paid by honest customers, leading to higher premiums.

Detected and undetected fraud is estimated to cost European insurers and their honest customers €13bn a year.

The insurance industry is proactive in fighting fraud. Its methods include: using technology and data analytics; cooperating with law enforcement agencies; and running information campaigns.