The Rising Challenge of Insurance Fraud
As an industry built on trust and accountability, insurance companies face an escalating battle against fraud. Over the past decade, the increasing shift towards digitisation has also seen a growing trend of organised attempted fraud, particularly in the UK. Download our full article to dive into a comprehensive analysis of this complex situation.
Navigating the Surge: Organised Crime and Fraud Patterns
Fraudsters are capitalising on the digital era, exploiting loopholes to infiltrate the insurance market with devastating effect. Recent data reveals a substantial increase in activity from organised crime groups, with staged accidents up by an alarming 31%, thus overtaking claims farming as the most common type of insurance fraud. The Covid-19 pandemic has escalated these issues, leading to a notable rise in application fraud. To understand how these patterns may impact future insurance strategies, get an in-depth perspective in our comprehensive article.
The Industry's Shift to Identity Verification
In response to the shifting fraud landscape, the insurance sector is focusing on boosting their defenses. One way is through investing in advanced counter fraud solutions and controls. At the heart of these solutions lies a simple, established, and highly effective principle - identity verification. Conducting rigorous identity verification checks at an early stage has proven to be beneficial across all lines of insurance business. Explore how this is revolutionising fraud detection.
Innovation Driven by Necessity
In the fight against fraud, innovation becomes a necessity. This is demonstrated in the development of tools such as Sherlock Alert. Designed to proactively detect personal injury fraud, this tool uses the information exchanged between an insurer/compensator and the Compensation Recovery Unit (CRU) to detect potential fraud.
Sherlock Alert highlights the potential savings of such an approach. Pilot results showed that 5% of submitted PI claims had a National Insurance Number mismatch. Of these, 20% were classified as suspect following identity verification checks; and, upon further investigation, 70% were proven to be fraudulent. How are these innovations impacting the future of the insurance industry? Find out in our detailed article.
While fraudsters continue to adapt and evolve their tactics, the insurance industry stands united in its commitment to combat fraud. Harnessing the power of technology and the benefits of identity verification, the sector is making significant strides in the battle against organised attempted fraud.
As fraud patterns evolve and new threats emerge, staying informed is crucial.