Insurers continue to invest in the latest counter fraud solutions and controls as technology advances, helping them to keep pace with the evolving methodologies used by fraudsters.
In October 2021, the ABI reported on 2020 claims fraud statistics. The number of detected fraudulent claims fell to 96,000, down 10% on 2019 to the lowest level since 2007. Their value, at £1.1 billion, also fell compared to the previous year, but at a lower rate of 4%. There was a rise in the average value of fraud detected to £12,000, up 6% on 2019.
Of particular note is the fact that despite a fall in the overall number of motor insurance claims due to fewer vehicles on the road during lockdowns, insurers detected proportionately more motor insurance fraud than in 2019. Detected motor fraud fell by 6% to 55,000 cases, while their value fell by only 1% to £602 million.
According to new data published in March 2022, LV= General Insurance has seen increased activity from organised crime groups with staged accidents up by 31%, overtaking claims farming as the most common type of insurance fraud. Induced accidents have similarly risen by 37%. The insurer has also reported a rise in application fraud post-Covid.
Topics covered include:
- Fighting fraud
- Know your customer…even better
- What are the potential savings?
- Identity verification
- Optimal customer onboarding
