Fake travel insurance claims surge by 85% - as fraudulent cases cost UK £1billion

Published: 06:19 EDT, 7 October 2026 | Updated: 06:19 EDT, 7 October 2026 Insurers detected a staggering £1.34billion worth of fraudulent claims in 2025, with travel recording the highest increase of cases.The latest data from the Association of British Insurers reveals that insurers uncovered a 14 per cent increase on the £1.18billion detected the previous year.While the number of detected fraudulent claims fell slightly to 93,900 cases, down 2.7 per cent on 2024, the value of fraudulent activity continued to rise sharply.The average value of a fraudulent claim reached £14,300 last year – the second-highest level on record, just below the peak of £14,600, recorded in 2022.Notably, fraudulent travel insurance claims recorded the sharpest increase in volume. Detected cases rose 85 per cent to 4,500, while value increased 16 per cent to £8.6million. The number of detected travel insurance cases has risen by 85 per centMeanwhile, motor insurance remained the area where insurers identified the highest level of claims fraud, accounting for 55 per cent of all detected cases. With 51,900 fraudulent motor claims worth £625million uncovered during the year, the figures point to fewer but more costly cases.Property insurance showed a similar year-on-year pattern. The number of detected fraudulent claims fell by 6.2 per cent to 17,700, while their total value rose by 3.4 per cent to £201million – bringing the average value to a record high of £11,400.It comes after it was revealed that travel insurance complaints have hit their highest level in three years, yet fewer travellers are winning their cases.New analysis from Norton Insurance Brokers found 1,275 travel insurance complaints were taken to the Financial Ombudsman Service between April and June 2026, up 30 per cent year on year. If you're planning to travel soon, insurance experts have revealed what you should check to prepare in advanceNorton’s experts recommend checking policy terms before travelling rather than waiting until something has gone wrong.Common avoidable reasons for claims being declined include undeclared medical conditions, excluded activities, travelling outside the limits of the policy and failing to provide enough evidence to support the claim.Travellers should keep receipts, booking confirmations, medical records, police reports and written correspondence with airlines or other providers where relevant. Saving digital copies as they go can make this easier if documents are lost during the trip.