Travel insurance fraud is a soft target for fraudsters – claim processes do not match the level of verification/investigation found in other insurance product lines. It is a common occurrence, and incidence is rising each year.
More travelers world over have submitted fraudulent claims to their travel insurers as they look to recoup the cost of their holiday. Research by the UK’s Direct Line Travel Insurance has estimated that nearly eight million people in the UK alone have made a claim on their insurance that was fraudulent in some way, with five per cent of those people fabricating their claim completely, and 15 per cent inflating the value of their claim. And that number is rising all the time. We are looking at a scam that’s costing the industry millions.