Axa has reported a rising trend in exaggerated claims.
The insurance firm claimed its experience is backed up by a poll of 56 brokers conducted by You Gov last month that found that more than a third (38%) believes customers are more likely to exaggerate claim than a year ago. Two thirds of brokers who responded to the poll said they would be in favour of “tighter checks” around home insurance claims.
The insurer added that separate research conducted in February on behalf of Axa by One Poll among 2000 UK adults suggested that 8% of claimants have added an average of £2898 to the real cost of their claim. It also found that 13% of brokers believed customers exaggerated claims, on average, by “thousands” of pounds. Meanwhile the consumer research indicated that 36% of people would be likely or very likely to consider exaggerating a home claim if they made one, while nearly half the population (47%) believe it is either fair game or at worst “not too bad” to tell a few white lies when making a claim.
James Barclay, home underwriting manager, Axa Personal Lines said: “Exaggerated claims have always been an issue for insurers but over the last few years there has been a marked increase in numbers.
“Generally people see it as a victimless crime but ultimately, honest policyholders foot the bill as insurers have to pass on the cost to their customers. We would urge all brokers to help educate consumers that it’s just not worth trying to get away with it.”
Axa said its surveys suggested that people in the West Midlands, Wales and London are “the most likely to stretch the truth” with people in the East Midlands, Northern Ireland and the North East appearing “to be the most honest”.
It found men are considerably more likely to exaggerate a claim than women and the amount they exaggerate by is nearly twice that of women.
Common areas of exaggeration are TVs – with numbers of these claims peaking before a big event like the World Cup; watches – where claims are made for a designer watch which in fact is a counterfeit bought abroad; freezer food – people claiming to have had a freezer full of lobster and fillet steak rather than fish fingers and peas; and cash.
Source : Postonline
