Just how effective has Sedgwick been in its fraud strategy efforts?
In its latest report, the company reported a total of £49.4 million saved in 2023 through its international claims fraud strategy. There was also an 8% uptick in the identification of suspect claims within Sedgwick’s UK operations.
Additionally, the company saw a rise in the average cost of claims under investigation, attributed not only to inflation but also to a surge in fraudulently exaggerated claims related to water damage during the UK’s winter freeze in 2022. Its report comes shortly after Allianz Commercial reported its own fraud figures for 2023, showing a spike to £77.4 million.
Ian Carman, director of Sedgwick’s UK fraud and investigation services, noted the significant growth in savings delivered to UK clients via this fraud strategy.
“Over the past three years, the value of savings delivered to our UK clients has grown by 73%,” Carman said, crediting this success to the firm’s efforts to identify fraudulent claims, thereby protecting clients and honest customers from the financial impact of fraud.
In this press release, Sedgwick has reported that efforts tied to the company’s international claims fraud strategy saved our clients £49.4m in 2023. Click the link to read more. https://t.co/zAS8kvXK2l pic.twitter.com/IjICh3jdHX
— Sedgwick (@Sedgwick) February 26, 2024
Carman explained how these results were achieved, emphasising a blend of technology and expert analysis.
“I’m pleased that our ability to deliver these results, which relies on a blend of sophisticated counter-fraud technology solutions and colleague expertise, has been achieved without any detrimental impact to the customer experience,” he said. “We continue to adapt our strategies to identify and tackle new and emerging fraud risks to deliver better results for our clients and their customers.”
Steve Crystal, head of Sedgwick’s international fraud and investigation services, also highlighted the increased attention from regulators on fraud oversight and the global market’s focus on financial stewardship.
“We’re seeing a growing appetite for mitigating the threat of fraud internationally,” Crystal remarked. He explained that Sedgwick is enhancing its cross-border capabilities to tackle fraud across all product lines, acknowledging the universal challenge it presents.
The company’s experts have also observed a rise in organised fraud rings, exploiting financial services by targeting transactional, embedded insurance benefits such as travel, medical, and purchase protection, across various geographies.
Crystal stressed the importance of international cooperation in combating fraud, noting that it does not “sit neatly within borders.”
“We encourage markets to explore collaborative opportunities for sharing their findings while maintaining appropriate levels of local protection and compliance,” Crystal said.
Sedgwick is planning to launch a new suite of technology solutions in the UK later this year, aimed at advancing claims fraud risk identification.
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