Unews World
Allianz UK has said it uncovered 90 frauds per day worth £430,000 typically last year.
The insurer detected 33,027 instances of insurance fraud worth a total of £157.24 million in 2024, representing an increase of around 10% on the £142.38 million total for 2023.
The detection of application fraud continued to grow, with trends including increasing levels of policy abuse, misrepresentation and ID theft, including a high number of ghost brokers, Allianz said.
Ghost brokers are not real brokers but criminals who alter policy details to artificially bring down the cost of cover.
Allianz also said there was an increase in frauds involving moped and motorcycle riders, often connected to the delivery industry, with people trying to circumvent having the proper level of cover in place.
Insurance fraud is a serious problem that pushes up the cost of policies for honest consumers and adds to insurers’ costs
Ben Fletcher, Allianz UK
“Recycled” claims which had previously been declined were also uncovered, as were “crash for cash” scams where vehicle collisions are staged.
The insurer has also seen rises in fake and exaggerated theft claims for property insurance.
Ben Fletcher, director of fraud at Allianz UK, said: “Insurance fraud is a serious problem that pushes up the cost of policies for honest consumers and adds to insurers’ costs.
“The vast majority of claims are genuine and our focus as a business is to ensure we settle those promptly, but the sad reality is that some people will go to enormous lengths to make fraudulent claims.
“The increase in the amount of fraud can be attributed to several factors. The ongoing cost-of-living challenge and financial struggles people are facing is driving some people to commit insurance fraud.
“We are resolute in our determination to identify and defend against any type of fraud and use a variety of methods to detect it. We share information with the police and other insurers to prevent fraud happening and will not hesitate to prosecute cases.
“Potential fraudsters need to understand that if you try and commit fraud, then be warned, you may end up with a criminal record.”
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