The number of fraudulent claims detected dropped 10% to 96,000. The total value also declined to 1.1 billion.
“Insurers have adapted very quickly to the unprecedented epidemic challenge of protecting and supporting their honest customers,” said Mark Allen, ABI’s chief fraud and financial crime officer.
“While motor insurance reflects significantly lower claims during the lockdown last year, it is not surprising to see a decline in fraud detected last year. Also affected are various government assistance schemes that help individuals and organizations cope with financial hardships that can typically lead to insurance fraud.” .
In motor insurance, detected fraud decreased 6% to 55,000; Price-based, the sum of £ 602 million is 1% less than 201 to.
Allen asserted: “The increase in fraud detection rates shows that no matter how difficult the situation, insurers will continue to do their best to stop fraud to protect their honest customers. “
In 2020, 2,000,000 property insurance frauds worth £ 111 million were caught. In the case of fraudulent travel insurance claims, 700 were caught last year for a combined value of £ 80 million.
Comments on numbers, Allianz Counterfeit head James Berg said: “Our zero-tolerance approach to fraud is paying off. Just last week in York County Court, a couple who claimed for a whiplash injury and a damaged laptop were dismissed. The judge found them to be fundamentally dishonest. Karen instructed them to pay more than। 10,000.
“Whether opportunistic or organized, insurance fraudsters are constantly changing tactics and exploiting loopholes. But our investigative teams are using technology and have kept their finger on the pulse to identify fraud attempts with increasing results.
Ben Fletcher, director of the Insurance Fraud Bureau (IFB), meanwhile, thanked the industry for its cooperative efforts against insurance fraud and stressed that there is no room for complacency.
Fletcher noted, “The disruption caused by covid means that many people are facing economic hardship that provides fertile ground for fraudulent fraud.” “Not only does insurance fraud increase everyone else’s premium costs, some scams like intentional collisions can put innocent people at serious risk of loss.
“In this challenging time, it is imperative that the public be vigilant and report evidence of insurance scams to our confidential chitline, so that we can work with the police to stop fraud and protect consumers.”
IFB partners SAS UK and Ireland also provide insights. The company’s insurance chief, Paul Ridge, highlighted the need to improve fraud detection and prevention.
Ridge announced: “We are working with the Bureau of Insurance Fraud to develop data-sharing capabilities through a collaborative technology platform for the insurance industry, providing information on confirmed fraud and suspected fraud.
“Having this service on the same platform will enhance the efficiency of fraud investigation and prevention services provided to the UK insurance industry, where users can share, analyze, monitor and investigate suspicious intelligence information in real time.”
“The need for advanced analysis technology is important to deal with fraud effectively,” he said.
Chief Intelligence Inspector Adele Michaels, who heads the Insurance Fraud Department (IFED) of the London Police, said co-operation with insurance fraud across the industry and with law enforcement is crucial.
“It’s optimistic to see that the rate of fraud detected by insurers has increased over the past year, demonstrating the industry’s resilience in protecting its customers,” Michaels said. “IFED has worked hard on this identification, the number of arrests by the unit is double (124%) more than last year.
“We are pleased that a number of courageous fraudsters were brought to justice last year after an industry-backed IFED investigation, despite a number of court cases being adjourned because of Covid-1 because. These results are expected to act as a deterrent for any offenders as life begins to return to normal and more opportunities for insurance fraud are created.