Record fraud savings in 2018

Posted on: 04 February 2019

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Fraud is always high on insurance companies’ agendas and it seems Allianz’s efforts to scupper the scams are paying off, since 2018 was a record year for fraud success.

In August 2018, the Associated of British Insurers (ABI) calculated that one instance of insurance fraud is detected every minute[1]. This can impact negatively on genuine policyholders, who may bear the brunt of higher premiums which reflect the cost of false claims.

Allianz’s total fraud savings in 2018 amounted to £64.75m, which was an increase on 2017 of £2.75m. The most common type of fraud committed related to motor claims – totalling 41% of all bogus claims. However it was also revealed that fraud is increasingly significantly in the Casualty space, with detection up 61%. Also in Commercial property Allianz detected a 25% increase in fraudulent claims in 2018 compared to the previous year.

The highest customer fraud saving amounted to just over £2m on a fire claim submitted on behalf of a commercial property. The claim included severe underinsurance, several undisclosed liquidations and previous dissolved companies. Allianz is seeing a consistent increase in fraud being detected in larger losses year on year. However, continued investment in digital solution and fraud training is paying off.

Nick Kelsall, Allianz Fraud Manager commented:

I am extremely proud of the result our highly skilled fraud team has achieved. Whilst this is a great result, we must not be complacent in 2019. Ahead of the legal reforms and technological advances, with a vastly changing landscape, we need to be vigilant and agile to defeat new types of behaviours and ensure that these criminals are identified and dealt with accordingly."