Combatting fraud

Posted on: 07 August 2018

The number of fraud cases in the UK financial services and insurance industry increased by 72% in 2017, costing the sector a total of £900m1.

Fraudsters are continually devising new, sophisticated ways to try and deceive insurers, ranging from 'crash for cash' cases to 'ghost broking', where criminals sell fake car insurance leaving unsuspecting victims uninsured. This prompted the Insurance Fraud Enforcement Department (IFED) to launch a national campaign, #SteerClearofFraud2, in February, to raise awareness of this issue.

Allianz is tackling the problem head-on and a focus on fraud led to £62m of claims fraud savings in 2017. In the same year, 22 claims were referred to the IFED.

More recently, Allianz has been shortlisted for two awards for the Insurance Fraud Awards 2018; firstly for 'Counter Fraud Team of the Year' in commercial lines and also for 'Fraud Investigation of the Year'.

With many insurers having taken comprehensive steps to protect their personal lines business, it’s recognised that fraudsters are increasingly targeting commercial lines products. Allianz has put various controls in place to protect its commercial book, including strengthening the collaboration between Underwriting and Fraud teams. Through working in close partnership, the teams can compare policy information against an Intelligence Hub; a database containing suspect and fraudulent data.

Further, Allianz has developed a quote manipulation system which takes into account various factors which can indicate suspicious or fraudulent activity. Any findings are referred on to specialist teams and discussed with brokers where necessary. The benefits of this work are already being realised, with a number of policies being investigated and several voided as a result.

Donna Wood, Allianz commercial motor underwriting manager said:

Our fraud detection has increased dramatically, particularly in the commercial motor and motor trade areas. Through our teams working much more collaboratively, and by using each other’s expertise in underwriting and fraud detection, we’ve already identified and dealt with a number of cases."