Allianz UK has reported a significant rise in fraudulent claims, particularly involving noise-induced hearing loss and fake businesses, during the first half of 2024. The increase in fraud detection has allowed the insurer to save £37.7 million in the half-year, with a notable portion stemming from casualty fraud cases, especially major loss fraud.
According to Allianz, the use of advanced machine learning tools like Incognito has played a key role in boosting its ability to spot fraudulent activity. The technology has helped drive a 3.5% increase in overall fraud detection, with motor insurance fraud being a consistent area where detection efforts have grown.
Casualty fraud has seen a particular surge in noise-induced hearing loss claims. Recently, two such cases were dismissed in court, where judges found the claimants guilty of fundamental dishonesty. In both instances, Allianz was awarded costs against the claimants. The insurer also continues to notice a rise in casualty fraud schemes often fuelled by so-called professional enablers.
In addition, Allianz’s property team has observed an uptick in claims for pre-existing storm damage, particularly during periods of adverse weather. Many of these claims involve individuals attempting to cover older damage by exaggerating the extent of storm-related losses, hoping to pass off the extra repairs as part of the storm’s aftermath.
Meanwhile Allianz has recorded a 15% increase in fraud savings due to improved early detection. One specific trend highlighted by the application fraud team is the rise in fraudulent businesses trying to obtain motor fleet insurance by using falsified documentation, including fake Confirmed Claims Experience reports.
James Burge (pictured), head of counter fraud at Allianz Commercial, remarked: “Our half-year fraud results reflect our relentless efforts to protect our customers and maintain the integrity of our services.
“The fraud teams have shown continued determination in rooting out those who falsify all types of policy and claims. Our investments in technology, such as machine learning and AI (artificial intelligence), training, and collaboration across the industry and broker network are paying off, and we remain committed to staying ahead of fraudsters.”
Burge also emphasised the importance of working closely with brokers to enhance fraud detection capabilities.
“Our strong collaboration with brokers has further heightened their fraud awareness and detection, and at Allianz we continue to champion commercial fraud management. By sharing our insights and strategies with our industry partners and supporting the Commercial Fraud Intelligence Group (CFIG), we are ensuring that all customers can benefit by building a more vigilant and stronger industry.”
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