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Insurance Fraud Taskforce

Volume 611: debated on Thursday 26 May 2016

The Insurance Fraud Taskforce was established as an independent body by HM Treasury and the Ministry of Justice in January 2015 in order,

“to investigate the causes of fraudulent behaviour and recommend solutions to reduce the level of insurance fraud in order to ultimately lower costs and protect the interests of honest consumers”.

The final report of the Insurance Fraud Taskforce published on 18 January 2016 made 26 recommendations to tackle fraudulent activity ranging from organised or premeditated crime to opportunistic fraud. It is available at insurance-fraud-taskforce-final-report.

The Minister of State for Civil Justice (Lord Faulks) and I are very grateful for the work of the taskforce members, and to all those who contributed to it. We are particularly grateful to David Hertzell for his efficient stewardship of the taskforce.

The report highlighted the particular problem of fraud in relation to low value personal injury claims and the Government have established a programme of reforms in this area, particularly in respect of whiplash claims. We are pleased that the report’s recommendations reflect and support that reform programme. The Government accept each of the recommendations addressed to it and we will set out in due course how we propose to implement them. However, there needs to be a concerted effort by all those involved in the insurance process to tackle this serious problem, which is estimated to cost policyholders up to £50 each per year, and the country more than £3 billion. We therefore expect organisations tasked with taking forward recommendations to do so with urgency. The Government will do what they can to assist and, in order to make sure that all of the recommendations are actively pursued, we will seek an update on progress later in the year.