Record fraud savings in 2018
Posted on: 04 February 2019
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. 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."
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