Allianz Commercial reported a significant increase in detected claims fraud for the year 2023, with the figures reaching £77.4 million, up from £70.7 million in the previous year.
The insurer also reported savings of £1.95 million from application fraud, attributed to the ongoing cost-of-living crisis, which is believed to be exacerbating financial pressures on businesses, consequently elevating the risk of insurance fraud.
In its report, Allianz also highlighted a 10% increase in claims fraud detection compared to 2022, attributing the improved detection rates to the deployment of its machine learning tool, Incognito, and the diligent efforts of its claims validation teams.
A notable trend observed in 2023 was the increased attempt to use false Confirmed Claims Experience (CCE's), akin to a no-claims bonus in the commercial sector, suggesting a potential rise in identity theft of legitimate companies. Moreover, while “crash for cash” motor accidents had seen a decrease in 2022, Allianz Commercial noted a 25% increase in such incidents in 2023.
The insurer also pointed out ongoing challenges with mopeds and courier services fabricating or inducing accidents, alongside similar fraudulent activities involving pedal cycles and pedestrians. These incidents are thought to be partly influenced by changes in the Highway Code.
In the casualty insurance sector, there is a continued rise in fraud orchestrated by professional enablers. Within the property insurance domain, there was a 41% increase in investigations related to deliberate non-disclosure by policyholders in comparison to the previous year. This encompassed cases where individuals falsified their claims history, or failed to disclose criminal convictions or their association with liquidated companies.
James Burge, head of counter fraud at Allianz Commercial, remarked on the overall increase in insurance fraud across various sectors in 2023.
“Our success in detection and preventive measures lies in the superb collaboration across our teams, with effective strategies and support from our suppliers and leadership teams,” Burge said. “We remain focussed on fraud detection to protect our honest customers in 2024.”
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