New Report Highlights Reduction in Insurance Claims Fraud

Posted Nov 04, 2019.

Recent statistics published by London-based multinational insurer Aviva indicates that over a twelve month period, there has been a reduction in fraud for general insurance claims(‘general insurance’ being non-life insurance policies that cover risks including motor vehicle and house buildings and contents).

The numbers show that in 2018, the overall value of suspected or proven general insurance fraud fell by 11% compared to the previous year, representing a £10m reduction in monetary terms. However, Aviva say that such fraud tops £80m per year, with the FTSE 100 insurer increasing its efforts to combat illegal and illegitimate claims. Whilst robust action against fraudsters is to be applauded, it is important that insurers like Aviva also try to reduce the number of perfectly legitimate claims that may be rejected for often spurious reasons.

Motor Insurance Claims

The largest category of fraud, making up over two-thirds of all such claims, is motor insurance. Indeed, Aviva state that they are currently investigating nearly 13,000 suspect motor insurance claims, the majority of which involve personal injury. According to their investigations, they state that one in seven personal injury motor claims are being rejected for fraud. Whilst Aviva’s implementation of increasingly more sophisticated fraud detection and prevention measures is paying dividends, the statistics suggest that fraudsters have started focusing more on other types of injury claims, such as slip/trip claims in supermarkets and public spaces. Changes in legislation, in particular in how whiplash claims are processed and the amount of compensation available, have also made helped in the fight against the fraudsters. In commenting on the statistics, a spokesperson for Aviva UK General Insurance said:

“We are pleased to see that the continued investment and focus we have given to prevention and detection is starting to reduce the impact of fraud for our genuine customers…We are also working hard to ensure that there are consequences for fraudsters. We have 172 cases currently under investigation with the police, and last year we worked with enforcement agencies to help to prosecute 58 instances of fraud, securing custodial sentences of over 68 years—which we hope will serve as a strong deterrent to people considering insurance fraud in future.”

Do You Have a Genuine Claim That Has Been Rejected? We Are Here To Hep

 

Whilst insurers need to combat insurance claims fraud, at Bakers Solicitors we are seeing an increasing number of clients with perfectly legitimate claims that are being disputed and rejected by insurance companies. Our disputed claims team can help such clients on a no win, no fee basis, with no upfront or unexpected costs.

 

So if you feel you have been treated unfairly by an insurance company, please contact us today for straightforward and professional assistance. You can contact us by email, arrange a free consultation online or ring us on FREE on 0800 731 7284.