The Association of British Insurers has admitted that it suspects a rise in large-scale fire damange...
The Association of British Insurers has admitted that it suspects a rise in large-scale fire damange claims since last September is linked to a rise in insurance fraud committed by businesses facing financial difficulties in the current economic climate.
A spokesman for the ABI says: "Historically the shape of the economy can influence the amount of insurance claims. When there is an acute downturn in the economy there tends to be a link between fraudulent claims and struggling businesses. But we cannot presume just because a struggling business has a fire they are making a fraudulent insurance claim."
Although businesses financial circumstances cannot influence claims, arson remains a big problem for insurers.
The ABI predicts fires cost the economy £17 billion every year and is calling for business and commercial properties to adopt comprehensive risk management programmes to cut down on the amount of fire claims and the rising cost of insurance cover.
Premiums for most types of insurance are expected to rise substantially through this year and next due to the events of 11 September as insurers seek to cover higher liabilities.
Increasing incidents of arson could add another layer of cost to that.
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