Last reviewed: 30 May 2026
UK insurance fraud reached £1.16 billion in detected claims in 2024, up 12 per cent on the previous year, according to the latest figures from the Association of British Insurers. The travel insurance sector saw the sharpest rise, with detected fraudulent claims jumping 97 per cent to around 2,020 cases. Honest claimants are likely to face slower processing and tighter checks as insurers respond.
Where the fraud is concentrated
Motor insurance accounts for the largest single share of detected fraud by value, driven by staged accidents, exaggerated whiplash claims, and ghost broker scams where fake insurance is sold through social media. Property fraud includes inflated theft claims and fabricated damage. Travel insurance fraud spans falsified lost luggage claims, fabricated medical bills, and duplicate claims across multiple policies for the same incident.
Why travel insurance fraud is rising fastest
The 97 per cent rise in detected travel fraud reflects two pressures. First, post-pandemic travel volumes have rebounded, creating more underlying policies and claims. Second, advances in document and identity verification mean insurers are detecting more fraud that previously went undiscovered. The total value of detected travel insurance fraud remains a small share of the £1.16 billion overall figure, but the trajectory is steep.
What it means for honest claimants
Tightening checks mean claims take longer to process. Photographs of damaged items, contemporaneous receipts, hotel and airline correspondence, and medical reports from treating clinicians are increasingly important. The Financial Ombudsman Service publishes guidance on what an insurer can reasonably request and the timeframes within which they must respond.
The government strategy
The Government published its Fraud Strategy 2026 to 2029 in March 2026. The strategy includes the replacement of Action Fraud with a new Report Fraud service, a Fraud Victims' Charter in 2027, and consolidation of fraud and cyber capabilities within the National Police Service and National Crime Agency. The ABI welcomed the strategy while urging stronger action on social media platforms that host ghost broker advertising.
How to protect yourself
Buy insurance only from FCA-authorised providers. The Financial Services Register at fca.org.uk shows every authorised insurer. Never pay for car insurance through cash, bank transfer to an individual, or social media direct message. Keep policy documents and digital receipts together and back them up. For travel, take photographs of luggage, valuable items, and travel documents before departure.
Frequently Asked Questions
What is ghost broking?
Ghost broking is the sale of fake car insurance, typically through social media, where criminals pose as brokers selling discounted policies. Victims discover the policy is invalid when they try to claim or are stopped by police.
How long should my claim take?
FCA rules require insurers to respond promptly. The Financial Ombudsman Service can be involved if the claim has been outstanding for more than eight weeks without resolution.
Can my premium go up if my claim is rejected?
A rejected claim does not automatically increase the renewal premium, but the underlying event (an accident, a theft) typically does affect the next premium calculation.
How do I report suspected fraud?
The Insurance Fraud Bureau operates a confidential cheatline. Reports can also be made to Action Fraud (being replaced by Report Fraud), the FCA, or directly to the insurer.
How We Verified
Detected fraud figures were sourced from the Association of British Insurers' annual detected fraud report for 2024. The travel insurance increase was cross-referenced against ABI travel insurance committee data. Government strategy details were taken from the Home Office Fraud Strategy 2026-2029 published in March 2026.
