Fraud costs estimated at 3.2 billion USD in France

Acts of fraud in non-life insurance have increased: 35 000 fraudulent claims were reported in 2011 by insurers compared to 12 000 in 2003. Fraud accounts for 4% to 8% of the premiums currently collected for this class of business, and for 15% of paid claims. Acts of fraud consist in false statements made during contract establishment, fictitious or overstated claims, or false statements upon occurrence of an event. While fraud increases in periods of economic crises, new kinds of swindles are being invented with the increase of organized criminal gangs. The impact of fraud is, henceforth, accounted for by the new Solvency II standards. Fraud in non-life insurance is estimated at 2.5 billion EUR (3.2 billion USD).