Aviva reported a 14% increase in the number of insurance claims it declined due to fraud in 2024, identifying over 12,700 suspect claims valued at £127 million.
This equates to around 35 fraudulent claims a day, totalling approximately £349,000 daily. The insurer said it is continuing to investigate a further 14,600 claims for suspected fraud.
This follows a 39% increase in detected claims fraud in 2023. In addition to claims, Aviva also flagged more than 98,000 fraudulent insurance applications during 2024, nearly double the number detected in the previous year.
Pete Ward (pictured above), head of claims counter fraud at Aviva, said that the majority of customers are honest and that the company is committed to settling claims quickly. He noted that Aviva continues to invest in analytics, machine learning, and training to enhance fraud detection.
Insurance fraud in the UK has seen notable fluctuations from 2020 through 2024. In 2023, insurers detected 84,400 fraudulent claims, marking an increase of 11,800 cases compared to the previous year.
The total value of these fraudulent claims amounted to £1.1 billion, a 4% rise from 2022. The average value per fraudulent claim was approximately £13,000.
In 2023, the total value of detected fraudulent claims was £1.1 billion, as reported by the Association of British Insurers (ABI).
In its report, Aviva noted that motor claims accounted for around 75% of all fraudulent activity uncovered. While the volume of crash-for-cash schemes has declined, there has been a noticeable shift towards exaggerated injury claims, as well as inflated repair and credit hire costs.
As a result, dishonest claims for motor damage rose by 24% in 2024. Since 2021, fraudulent activity involving motor damage and credit hire has increased by 275%.
The insurer noted a continuing issue with ‘spoof ads’ placed by certain claims and accident management companies (CMCs and AMCs). These advertisements are typically encountered by motorists searching online for their insurer’s contact details following a collision.
Mistaking the CMC or AMC for their own insurer, motorists often proceed with services that later result in disputed charges, sometimes amounting to tens of thousands of pounds. When these claims are not made directly through the insurer, the insurer may be unaware and unable to assist.
Public liability fraud grew by 12% in 2024, which Aviva partially attributes to a shift in focus by organised fraudsters following whiplash reforms. These frauds often involve staged slip, trip or fall incidents. Meanwhile, fraudulent employer’s liability claims remained relatively unchanged.
Household insurance fraud now represents one in 10 detected cases. Most of these are described as opportunistic, involving inflated or fabricated claims for personal items. Common items include mobile phones, televisions, jewellery, laptops, tablets, and watches.
Commercial insurance fraud also saw notable increases. Fraudulent property claims, in particular, rose by 89% during the year, with exaggerated claims often facilitated by third-party claims professionals.
Aviva specifically reported an increase in claims related to escape of water. Commercial motor fraud also increased by 14%, primarily driven by exaggerated claim costs.
Fraudulent applications nearly doubled from 2023 levels, exceeding 98,000 cases. Aviva linked this increase to its expanded detection capabilities and staff training.
Within this figure, the insurer identified an 18% rise in ghost-brokered policies and connected a further 8,600 cases to existing ghost broking investigations.
Aviva said that it has focused efforts on identifying these cases at the quote and application stage to mitigate risks, particularly among young drivers.
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