UK Insurers Detect £1.34 Billion in Fraudulent Claims in 2025, Travel Insurance Sees Sharpest Rise
The Association of British Insurers reports a 14% increase in detected fraud value, with travel insurance claims surging by 85%.
Insurers in the UK detected a total of £1.34 billion in fraudulent claims during 2025, marking a 14% increase from the £1.18 billion identified the previous year, according to data from the Association of British Insurers (ABI).
While the overall number of detected fraudulent claims saw a slight decrease of 2.7% to 93,900 cases, the financial value of these fraudulent activities continued to escalate. The average value of a fraudulent claim reached £14,300 in 2025, the second-highest level on record. This trend indicates fewer, but more substantial, fraudulent cases.
Travel Insurance Sees Significant Increase in Fraud
Fraudulent claims within the travel insurance sector experienced the most significant surge in volume. Detected cases rose by 85% to 4,500, with the total value of these claims increasing by 16% to £8.6 million.
Motor and Property Insurance Fraud Trends
Motor insurance continued to be the area where insurers identified the largest proportion of fraud, accounting for 55% of all detected cases. In 2025, 51,900 fraudulent motor claims worth £625 million were uncovered.
Property insurance followed a similar pattern of increasing value despite a decrease in the number of detected fraudulent claims. The total value of fraudulent property claims rose by 3.4% to £201 million, while the number of cases fell by 6.2% to 17,700. This pushed the average value of a fraudulent property claim to a record high of £11,400.
Advice for Travelers
These findings emerge as travel insurance complaints have reached their highest level in three years, with fewer travelers successfully resolving their claims. Analysis from Norton Insurance Brokers indicated a 30% year-on-year increase in travel insurance complaints taken to the Financial Ombudsman Service between April and June 2026.
Experts advise travelers to thoroughly review their policy terms and conditions before embarking on their trip. Common reasons for claims being declined include undeclared medical conditions, excluded activities, policy limit breaches, and insufficient evidence to support a claim.
To avoid potential issues, travelers are encouraged to retain all relevant documentation, including receipts, booking confirmations, medical records, police reports, and correspondence with travel providers. Saving digital copies can be beneficial, especially if physical documents are lost during a trip.