Insurance fraud: 1 in 5 French people have already done so

Insurance fraud: 1 in 5 French people have already done so

According to one study, it is 9 points more than 2021… The reasons are many, but the risks are great.

Car or home insurance frauds are on the rise in France. This is the conclusion of a YouGov study* conducted for the LeLynx comparator.

Thus, in 2022, nearly 20% of policyholders assume they have actually committed insurance fraud, compared to 11% in 2021. A significant increase that is difficult to explain.

What are the motives? 35% of French people who cheat did so to avoid a penalty (car insurance) or to avoid increasing insurance premiums (32%). 29% sought to benefit from better claims compensation.

Others do it to help a third party…More than 1 in 3 French people have already done so or could use their insurance for the loss of a loved one. This trend is more common among young people: 28% of those aged 18-34 have actually carried out this type of fraud compared to 7% of those aged 55 or older. Conversely, 29% of the French already have or can use a loved one’s insurance to their advantage.

Young people are most likely to cheat

Who are policyholders who cheat the most? According to the study, 36% of people aged 18-34 said they had already defrauded their insurance against less than 15% among those aged 55 and over. We can read: “Looking at the benefits/risk side, nearly a third of those under 35 years of age indicate they would do so again if given the opportunity.”

“Unlike young policyholders whose premiums are likely to explode if a claim is made, older people are less hesitant about the idea of ​​a penalty and therefore publicize their claims more. Young drivers, for example, are already paying the price strong with car insurance. At around €971/year, or 33% more expensive than the general average. The bill may be higher if a fine is added to the bill!” explains Itzal Arbid, CEO of LeLynx.fr.

Cheating also appears to be a somewhat patriarchal practice: of the percentage of French who say they have actually cheated, 58% are men and 42% are women.

However, almost a third of scammers admit to regretting their actions…

big risk

It must be said that insurance fraud can be very costly for the insured. The study notes that “Failure to report a claim, hold someone else liable, or submit false invoices are all insurance fraud. Penalties range from not taking responsibility for the claim to paying all claims that the insurer has indemnified for two years.” .

It can go further in case of repetition. Insurance fraud is defined as a criminal offence, and is punishable by 5 years in prison and a fine of €375,000.

If fraud is on the rise, 80% of French people say they are still satisfied with their insurance. As per the comparison, they pay an average of €641 per year for their car insurance and €153 per year for their accommodation insurance.

*: A quantitative survey conducted by YouGov in May 2022 on a sample of 1,008 respondents representing the French population of 18 years or older.

Oliver Schechbortich BFM Business Journalist

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