Government response to the recommendations of the Insurance Fraud Taskforce:Written statement - HLWS24

WS
Ministry of Justice
Made on: 26 May 2016
Made by: Lord Faulks (The Minister of State for Civil Justice)
Lords

Government response to the recommendations of the Insurance Fraud Taskforce

The final report of the Insurance Fraud Taskforce was published on 18 January 2016. It 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’. It made 26 recommendations to tackle fraudulent activity ranging from organised or premeditated crime to opportunistic fraud.

The Economic Secretary to the Treasury 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 has 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 accepts 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 that all of those organisations to which recommendations are addressed will take them forward with urgency. The Government will do what it 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.

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