Austerity has changed the UK in countless ways. One of the less well-documented effects has been the steep rise in insurance fraud. As the cuts bite, the desperate and dishonest seek to make much-needed cash by twisting the truth. KPMG’s 2019 Fraud Barometer survey found there had been an £81 million increase in the value of fraud against businesses involving traditional embezzlement against employers, manipulating accounts or abuse of against employers, manipulating accounts or abuse of position, compared to the previous year.1
At the same time, austerity measures have slashed local authorities’ budgets and forced councils into making difficult decisions. Since they do not affect frontline services, risk management expenditure and insurance budgets are tempting targets. However, in a world where fraudulent claims are increasing, this can leave local authorities more exposed to fraudsters than ever.
Saving money on insurance shouldn’t mean forking out more in dubious insurance claims. With strong risk management procedures in place, public sector bodies can decrease insurance costs by keeping premiums low and by reducing the risk of successful fraudulent claims.
Published date: 26th March 2020
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