Key Points
- Travel insurance fraud cases rose 85% in 2025 to 4,500 cases, with a combined value of £8.6 million.
- Insurers are tightening claims checks and disclosure requirements to combat rising fraud, which may impact honest travellers.
- Brokers advise travellers to build a paper trail while away, including photos, receipts, and medical notes, to speed up legitimate claims.
What Travel Insurers Are Doing to Combat Fraud
Travel insurance fraud cases surged 85% in 2025, prompting insurers to crack down on claims and disclosure checks. This may impact honest travellers, who will face tougher scrutiny of their claims.
According to the Association of British Insurers (ABI), detected travel insurance fraud rose to 4,500 cases, with a combined value of £8.6 million. The average detected fraudulent claim was £14,300, the second-highest on the ABI's records.
Insurers are now tightening claims checks and disclosure requirements to combat rising fraud. This means that honest travellers will need to provide more documentation and evidence to support their claims.
At a Glance
| Travel Insurance Fraud Cases | 4,500 Detected cases in 2025, an 85% increase |
| Combined Value of Fraudulent Claims | £8.6 million Average claim value was £2,000 |
| Average Detected Fraudulent Claim | £14,300 Second-highest on ABI's records |
| Stopped Fraudulent Applications | £1.8 billion Insurers prevented fraudulent applications worth this amount |
Where the Sides Stand
Honest Travellers
Position: Affected by tighter claims checks
Role in the story: Claimants
Motivation: To navigate the new requirements and avoid delays (our reading)
Insurers
Position: Cracking down on claims and disclosure
Role in the story: Providers of travel insurance
Motivation: To prevent and detect fraud
Why Insurers Are Cracking Down on Claims and Disclosure
Why Insurers Are Cracking Down on Claims and Disclosure
The rise in detected fraud suggests that insurers are targeting bigger payouts. Mark Allen, head of fraud and financial crime at the ABI, said that fraudsters are targeting much bigger payouts.
What It Means for Brokers
The figures make the case for stronger pre-sale and pre-claim guidance. Clear advice on documentation and deadlines can speed up legitimate claims and reduce the chance of disputes.
How Honest Travellers Can Navigate Tighter Claims Checks
How Honest Travellers Can Navigate Tighter Claims Checks
- Build a paper trail while away, including photos, receipts, and medical notes.
- Photograph valuables before travel.
- Report thefts to local police promptly.
- Declare medical conditions when buying cover.
- Check the wording of policies to understand deadlines for police reports.
Risk & Opportunity Assessment
| Commercial Risk | Medium | Tighter claims checks may impact honest travellers and lead to delays in legitimate claims |
| Competitive Risk | Low | The rise in detected fraud is not a significant threat to insurers' competitiveness |
| Regulatory Risk | Low | Regulators are not imposing significant new requirements on insurers to combat fraud |
| Reputation Risk | Medium | Insurers' reputation may be impacted if they are seen as overly restrictive in their claims checks |
| Technology Disruption | Low | The rise in detected fraud is not a significant threat to insurers' technology infrastructure |
| Commercial Opportunity | Low | The rise in detected fraud does not create significant new commercial opportunities for insurers |
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