Insurance Post’s Post

Great to be part of this recent discussion on #insurancefraud with fellow fraud fighters from across the industry. Are there other things that you are seeing? What are your predictions for the next big fraud on the horizon?

Latest from the IFB, as they urge the public to be vigilant on insurance fraud attempt's. This week also sees a campaign of media messages on the consequences of fraud – it isn’t a victimless crime, it does help push up premiums for every policyholder. Here’s the word; Fraud is the most experienced crime in the UK and accounts for over 40% of all crime, costing approximately £7 billion annually, according to industry estimates. Insurance fraud is front and centre of this, resulting in countless victims and bogus insurance claims and applications estimated to cost the industry over £2 billion each year. #fraud #motorinsurance

Filings to our National Fraud Database (NFD) show that reported opportunistic fraud is on the rise in the insurance sector. Following increases in false applications (+20%) and fake claims (+10%), the Insurance Fraud Bureau (IFB) has underlined that chancing insurance fraud is simply not worth the risk. Here’s what our NFD cases are telling us about the sector’s counter-fraud priorities. https://lnkd.in/emuYXJAp #Insurance #InsuranceFraud #InsuranceClaim #FalseApplication #Fraud #FraudAwareness

Major Insurance Fraud Ring Busted in Everett, Six Indicted: A sophisticated insurance fraud scheme in Everett involving over $1 million in false claims leads to multiple indictments, with two suspects still at large. #Litigation #Fraud #RiskManagement

🕵️♂️ Spotting Fraudulent Insurance Claims: A Guide for Private Investigators 🕵️♂️ Insurance fraud costs the industry billions annually. Our latest article dives into how private investigators can identify fraudulent claims, from recognizing red flags to conducting thorough investigations. We also cover how to prevent fraud through education and advanced techniques. Stay ahead in the fight against insurance fraud. Read the full article here: https://lnkd.in/eRit2Vga #PrivateInvestigation #FraudInvestigations #SurveillanceServices #BackgroundChecks #InsuranceFraud #InvestigationTechniques

#InsuranceFraud is a significant problem for insurers, but the full impact on innocent claimants is often overlooked. It's all too simple to fake an injury in a car accident or inflate a contents claim by adding extra items, rationalizing that it doesn't really harm anyone and that #InsuranceCompanies earn millions regardless. Serial fraudsters, unconcerned about their risk profile, are confident they'll secure insurance by any means necessary. For the rest, the consequences are rising premiums and prolonged claim investigations. Insurers, preferring to take six months to assess a claim to catch any fraud, fail to recognize the devastating effect these delays have on an innocent insured who has suffered a loss. The presumption of innocence until proven guilty seems obsolete; insurers appear to view most claimants with suspicion due to the surge in these types of claims. Policyholders should be clearly informed—not just in the fine print—that any fraud, no matter how minor, can adversely affect all their current and future insurance needs, including motor, home, and health. A single instance of proven fraud can affect an individual's ability to obtain coverage in the future. Fraud affects everyone involved in insurance, leading to higher premiums for claimants and extensive investigations for insurers. #InsuranceClaims #Brokers #InsuranceFraud

This article in the Insurance Post provides an insight into a recent roundtable amongst insurance industry leaders, discussing trends of increasing fraud over the past 12 months, and certainly resonates with my own experience dealing in the professional indemnity sphere. In my experience, these issues have been especially pronounced in (although by no means limited to) claims against solicitors, particularly in the context of residential conveyancing transactions. The days of the more rough-and-ready "Friday Frauds" seem to have been replaced with a stream of increasingly sophisticated and evolving fraud schemes, ranging from the use of cloned identification and banking documents to the infiltration of otherwise credible law firms to be used as vehicles for fraud. Against that background, my key takeaways from the Insurance Post roundtable are as follows: * The technology being used by fraudsters is becoming increasingly sophisticated and difficult to detect, particularly in relation to identity/document fraud and the rise of "shallow fakes". * Opportunistic fraud, such as the exaggeration of otherwise legitimate claims. Should economic conditions worsen further, this trend is only likely to continue. * Fraudsters do not discriminate. Fraud is a serious and growing problem across all lines of business. * There is a clear and mounting need for more holistic strategies to be adopted by insurers and other stakeholders (including solicitors such as myself!) across the entire insurance and claims cycle - including the underwriting and sales stages - to proactively identify and ideally prevent would-be fraudsters. I will be interested to see how things play out over the next 12 months. What seems clear to me, however, is that a proactive, focused and (to the extent possible) unified approach across the insurance industry presents the best opportunity to stem the tide and to hopefully see these worrying trends start to reverse... Many thanks to Fiona Reeve Ben Fletcher Peter Ward Karl Parr Angus Rogers Neil Martin Woodhead Paul Brockway Neil Wood CMgr MCMI Adele Sumner and Sarah Durkin for the valuable insights... Keoghs

'Insurance fraud epidemic continues; drives up operational, consumer costs', an interesting article posted on Insurance News Net reposted by NICB. Discussion on consumer attitudes, opportunistic versus organized fraud, identity theft, fraud statistics, and technology. Check it out! #analytics #fraudprevention #investigations #claims #insurance #lawenforcement

The Insurance Council of Australia (ICA) has appointed Andrew Gill as CEO of its new counter fraud and scams function to combat insurance fraud and scams. In 2023, ICA members uncovered $560 million in opportunistic fraud for motor and property alone, with undetected fraud estimated to cost the industry around $400 million annually. This new function will enhance industry-wide capabilities to detect organised fraud networks and identify emerging fraud trends. It will collaborate with ICA members to gather intelligence and boost insurers' ability to detect and prevent fraud. The function will also work with governments and agencies in their efforts to combat fraud and scams. Read more: https://hubs.la/Q02ymcZc0 #AntiScam #FraudPreventio

To mark Fraud Prevention Month, CISRO is encouraging consumers to do their due diligence when shopping for insurance. Fraud Prevention Month is a national awareness initiative held each March that aims to empower Canadians by providing information they need to recognize, reject, and report fraud. In 2022, the Canadian Anti-Fraud Centre (CAFC) received more than 50,000 fraud reports involving over $400 million in reported losses. #fraudprevention #fraudpreventionmonth #cisro #insuranceindustry #insurance #canadianantifraudcentre