Insurance fraud costs Canadian insurers more than $540 million annually

Organized insurance crime costs insurers and policyholders more than $540 million a year in Canada, according to a Lloyds report. “Insurance companies around the world are reporting a higher number of bogus claims from cash-strapped motorists, homeowners and other con artists,” the report reads.In the United Kingdom, the insurance industry uncovers an average of 335 fraudulent claims worth £2.3 million each day. Lloyd’s cites its source for the information as the Association of British Insurers (ABI). In the U.K., fraud is more prevalent in home insurance – roughly 170 false claims uncovered per day. Overall, insurers uncovered upwards of 2,000 fraudulent claims a week by the end of 2009, according to the ABI.Incidents of fraud climb during a recession or economic downturn, which can lead to higher premiums, Lloyds says. As fraud continues to rise, insurance companies are investing more in detection and technology.