You could not make it up – but they did. Every five minutes a fraudulent insurance claim is uncovered.

107,000 fraudulent insurance claims worth £1.2 billion uncovered by insurers in 2019. That is a new scam uncovered every five minutes – 300 a day.

Frauds worth £3.3 million detected every day.

A bodybuilder, police officer and a trainee GP among the cheats exposed.

And these are just the fraud cases that insurers uncover! Insurers are vulnerable because so much information they store in unstructured text. 

The free-form text boxes in claims notification forms and policy applications. The information collected in emails and investigations. The letters and reports received every day. 

Not only that but AI technology is both a friend and a foe! Professional fraudsters and criminals are as open to the potential of AI as any insurer. They seek out the weak points in digital workflows and processes, straight through processing (STP) and automatic payouts.

The anticipate what an insurer looks for and change the information provided to fool the checks and balances insurers deploy whether AI apps, FNOL evidence gathering or fraud team investigations.

360Globalnet reports significant results in the fight against fraud it undertakes for insurers which already deployed fraud solutions. 

  • Additional 8% travel fraud cases by ingesting travel data and documents
  • Additional 5% large loss claims requiring reserving
  • Specialist motor vehicle insurer identified additional 7% fraud cases 
  • Additional 3% to 8% claims routed to large loss teams

Leveraging 360Retrieve household name insurers are identifying the cases of fraud hidden under the iceberg and previously paid out on.

Still not convinced? Just look at the ABI findings below.

 Key findings from ABI’s survey of members highlights that last year:

  • There were 107,000 detected fraudulent claims, up 5% on 2018.  The rise was mainly due to increases in motor and property scams.
  • While the volume increased, there has been a small decrease of 2% in the value of detected claims fraud to £1.2billion – the equivalent of £ 3.3m uncovered every day. This resulted in a decrease in the average value of a fraudulent claim to £11,400, compared to £12,200 in 2018. 
  • Motor insurance frauds remained the most common, up 6% in number to 58,000 on 2018, albeit their value, at £605 million, fell slightly.  Around 75% of fraudulent motor claims contain a personal injury element – this may reflect some fraudulent activity ahead of the introduction of personal injury reforms in April next year
  • Property frauds showed a significant increase. There were 27,000 dishonest claims detected worth £124 million – a rise of 30% in number and 8% in value on 2018.
  • The number of liability frauds fell by 14% to 19,000. This may reflect insurers clamping down on ‘trip and slip’ and noise induced hearing loss claims, as well as measures implemented by the travel sector and government to reduce dishonest gastric illness holiday claims
  • Improved prevention measures and better reporting reflected a significant increase in the volume of application fraud detected, up over 200% on the previous year to 760,000 cases, worth £1.4billion. Application fraud typically includes non-disclosure of previous claims.

Everything to gain and nothing to lose by calling Mike.Daly on 07341 971132 or emailing me at Mik.Daly@360Globalnet.com