Last Updated on September 24, 2026 by Darren Carter.
Insurance fraud is a significant issue for the insurance industry and can affect honest policyholders through higher costs and increased fraud-prevention activity.
ABI figures published in 2025 show that insurers identified £1.16 billion of fraudulent general insurance claims during 2024. This included 18,700 deceptive property insurance claims worth £189 million. Deliberately exaggerated losses were the most common type of detected claims fraud.
In this podcast, Michael Williamson of Independent Loss Adjusters discusses different forms of insurance fraud, why insurers investigate suspicious claims and what policyholders should understand if fraud concerns are raised during an insurance claim.
Fraud can take different forms, including fabricated claims, deliberately exaggerated losses and deliberately false information intended to obtain an insurance benefit.
However, an inconsistency, mistake or disputed valuation does not automatically establish fraud. An insurer may investigate concerns before deciding whether it believes a claim is fraudulent.
This article explains the difference between suspected and established fraud, the potential consequences of a fraudulent claim and practical steps to consider if an insurer raises concerns about your claim.
Insurance fraud generally involves deliberate dishonesty intended to obtain a financial or other benefit that would not otherwise be available.
For example, the Fraud Act 2006 includes fraud by false representation. This requires a dishonest representation that is untrue or misleading, made with the intention of making a gain or causing, or exposing another to, loss.
Within insurance claims, fraud can include fabricating a loss or deliberately exaggerating genuine damage. ABI data shows that exaggerated loss remains one of the most common forms of detected insurance claims fraud.
In the podcast, Michael describes three informal motivations he has encountered during his investigation experience:
These are Michael’s practical observations rather than legal categories. Motivation alone does not establish that an insurance claim is fraudulent; the evidence and circumstances still matter.
An allegation of fraud can have serious implications, but an insurer raising concerns does not itself prove that a claim is fraudulent.
Michael discusses cases from his claims experience where the insurer’s initial concerns were later reconsidered after further evidence was reviewed. One example involved a fire claim in Scotland where the cause of the fire was disputed and the claim was eventually settled after a prolonged investigation.
If fraud is alleged, it is important to establish exactly what the insurer says is false or misleading, what evidence supports that conclusion and what policy or legal consequences it believes follow.
If an insurer raises fraud concerns, ask it to explain clearly what aspect of the claim is disputed and what evidence or inconsistencies have led to the investigation.
Keep copies of correspondence and supporting evidence, make accurate notes of important conversations and answer reasonable questions carefully and truthfully. Do not alter, manufacture or destroy evidence in an attempt to strengthen your position.
If the allegations are serious or the legal position is unclear, you may also need advice from an appropriately qualified solicitor.
Independent Loss Adjusters does not assist anyone to present a fraudulent or deliberately exaggerated claim as genuine. If the available evidence shows that a claim is fraudulent, deliberately exaggerated or genuinely outside the policy cover, we cannot help secure payment for it.
Insurers have a legitimate interest in identifying fraudulent claims. At the same time, a policyholder whose claim is being investigated should understand what concerns have been raised and have an opportunity to provide relevant information.
Suspicion is not the same as a final finding of fraud. If you disagree with an insurer’s position, review the reasons carefully and consider whether relevant evidence or context has been overlooked.
Our Insurance Fraud Investigators Guide explains what may happen during an investigated insurance claim, the types of information an investigator may request and sensible steps to take if the process becomes difficult to understand.
No representative can guarantee that a fraud allegation will be withdrawn or that a claim will be paid. The outcome will depend on the evidence, policy wording, applicable law and circumstances.
If an insurer raises concerns about fraud or deliberate exaggeration during an existing property insurance claim, Independent Loss Adjusters may be able to help you understand the issues being raised and organise the relevant claim evidence.
Depending on the circumstances, our support can include:
ILA provides insurance-claim support rather than criminal legal representation. If allegations could involve criminal proceedings or specialist legal questions, an appropriately qualified solicitor may also need to be involved.
Professional claim support does not guarantee that a fraud allegation will be withdrawn or that a claim will be accepted or paid. The outcome will depend on the evidence, policy wording, applicable law and circumstances.
If the evidence shows that a claim is fraudulent, deliberately exaggerated or genuinely outside the policy cover, ILA cannot present it as valid or payable.
Our Insurance Claims Management page explains ILA’s service, scope and applicable fees in more detail.
What Our Clients Say After Working With ILA
When your property claim feels uncertain, it can help to hear from people who have already been through the process. These testimonials show how Independent Loss Adjusters has helped clients deal with insurers, evidence, delays, settlement concerns and the practical steps needed to move a claim forward.
“Michael will do the job to the end he is a professional in his work. Thanks to his team all my problems were solved.”
“What can I say about this Company, nothing but AMAZING. We felt like they were our friends, totally on our side. The communication is just fantastic and they just keep going and going to the end.”
“Michael dealt with our case in such a very professional manner, providing excellent advice and valued assistance. What really mattered here was Michael had a real connection to us, offering true empathy to our case and real sincere desire to help us to the best of his ability.”
“Our loss adjuster, Michael, was very professional and provided clear communication from the onset. The claim was ultimately settled in quick time, with minimal complications.”
“From the very beginning, they demonstrated exceptional professionalism, in-depth industry knowledge, and genuine care for my situation. Their attention to detail and persistence resulted in a settlement that was both fair and far more comprehensive than I could have achieved alone.”
“We were at the end of our tether with the communication problem with the insurance and their appointed assessor. We contacted ILA and got an independent assessor Glenn Weatherall and his assistant, they couldn't do enough for us."
These testimonials describe individual clients’ experiences. Outcomes depend on the policy wording, evidence and circumstances of each claim.
Michael Williamson explains consumer insurance misrepresentation, how CIDRA applies when answering insurer questions and what policyholders should consider if misrepresentation is raised during a claim.
Michael Williamson explains what ‘sum insured’ means for contents insurance, how replacement value is estimated and why household inventories can help reduce underinsurance risk.
The policyholder’s responsibilities during an insurance claim, including reporting damage, providing reasonable information, limiting further loss safely and preserving useful evidence for the insurer.
Claim rejected, delayed, under investigation or offered a settlement you’re unsure about? Our guide covers what to check next, underinsurance and help with an existing claim.
Explore Common Claim Problems
Understand the difference between insurer-appointed and independent loss adjusters, what each role involves and when independent claim support may be appropriate.
Loss Adjuster Guides
Practical guidance on preparing, documenting and progressing an insurance claim, including what to do when questions, delays or disputes arise.
Making a Claim Guides
Clear explanations of common insurance terms, policy wording and claims terminology to help you understand correspondence, decisions and the claims process.
Insurance Terminology GuidesCLEAR, PROFESSIONAL CLAIM SUPPORT
A difficult claim often involves policy wording, technical evidence, repair costs and several parties. Our Loss Adjusters help policyholders understand the position and approach the next step with clearer information.
ILA is appointed by homeowners, landlords and businesses, not by the insurer handling their claim.
Our team brings experience across insurance claims, loss adjusting, damage assessment and settlement review.
We review the policy, correspondence and available evidence before explaining what appears clear and what may need further work.
Our regulated status supports clear information, appropriate conduct and fair treatment throughout the customer journey.
Independent Loss Adjusters Ltd is authorised and regulated by the Financial Conduct Authority for insurance distribution activities.
Tell us what has happened and where the claim currently stands. We will review the initial information and explain whether ILA may be able to help.
Every claim depends on its individual circumstances, supporting evidence and policy wording. No particular outcome can be guaranteed.
PROPERTY DAMAGE CLAIMS
Different types of damage bring different questions about evidence, repairs and cover. Choose the claim type below to see how ILA may be able to help.
We can help assess water damage, organise the evidence and present the claim under your policy.
Flood Damage Claim Help
We review the damage, repair scope and reinstatement costs to help you understand the claim position.
Fire Damage Claim Help
We assess the interruption, financial records and policy position when insured damage affects trading.
Business Interruption Help
We review the damage, circumstances and evidence after vandalism or deliberate damage.
Malicious Damage Claim Help
We can assess collision or impact damage and review the repair evidence and settlement position.
Impact damage claim help
We help organise supporting evidence and review the claim position after burglary or theft.
Theft Claim Help
Tell us what happened and where your claim stands. The initial conversation is free and without obligation. We’ll ask a few questions and explain whether ILA may be able to help. You can call us or complete the form; we’ll contact you using the details you provide.
If you choose ongoing support, we’ll explain the service and fee before work begins. Our general fee is 10% plus VAT of the overall settlement. Where you appoint ILA’s recommended contractors for the agreed reinstatement works, our fee is generally covered through that contractor route. The position depends on your claim and the proposed work.
What Happens After You Request a Callback?
When we speak, we’ll ask a few initial questions about the damage, your insurance policy and the current position of your claim.
You don’t need to have every document ready. The first conversation is simply to understand what has happened and whether we may be able to help.
If you’d prefer to speak to us directly, call 0800 002 5178.
For information about how we use and protect your personal data, please read our Privacy Policy.