Insurance fraud - but not as we know it

The UK insurance market is heading for unchartered waters when it comes to insurance fraud. Never before have so many factors come together at the same time (inflation, the fuel crisis, Brexit, war in Europe, global food shortages, political and economic uncertainty), to create an economic climate that will stretch all businesses, organisations, and individuals to the limit.

Recent history suggests that recession leads to a 25% increase in fraudulent claims in both commercial and personal lines as cash-strapped customers look for ways to supplement their income and turn their actual, or imagined, assets into cash. But this time it will be different. The 25% rise is already in evidence, with, for example, Zurich one of the latest insurers to confirm it has seen exactly that increase, having identified £4.2m worth of fraudulent property claims between January and May this year alone.

This present hike in fraud is just the tip of the iceberg. The cost-of-living crisis is not expected to fully impact the UK until the turn of the year when escalating fuel bills, and the impact these will have on all goods and services, will finally hit home.

This content highlights why the market could see a 40% hike in insurance fraud in the new year, and how insurers and their claims suppliers can start preparing today by gathering new and consistent data.

Topics covered:
• Fraud trends.
• Why fraud will reach far and wide.
• Why many product lines remain vulnerable.
• Time for the market to pool data.