Insight 40 - Magazine - Page 32
Aviva detected 39% more
claims fraud in 2023
A
viva reported a 39% increase in
the number of claims declined
as a result of fraud in 2023,
uncovering more than 11,000 suspect
claims worth £116m – the equivalent of
30 bogus claims a day with a value of
£318,000.
As a result Aviva is also investigating a
further 13,100 claims for suspected fraud.
Fraudulent motor insurance claims for
injury and vehicle damage represented the
majority of detected fraud, accounting for
two out of three (66%) suspect claims.
Motor injury fraud remains the most
popular target for fraudsters, accounting
for 35% of all bogus claims Aviva detected.
The number of fraudulent injury claims
declined for suspected fraud grew by 19%
and was worth more than £23m - £6m of
which came from declined crash for cash
claims.
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A large proportion of the injury claims
Aviva declined for fraud are opportunistic
claims brought by third parties (not Aviva
customers) – for example, an exaggerated
injury claim stemming from a low-speed
accident, such as a shunt in a car park.
Aviva defended more than 400 such
fraudulent or exaggerated bodily injury
claims at trial to limit the impact that
these claims can have on customers’
motor premiums.
MOTOR DAMAGE
Fraudulent claims for motor damage
rocketed by 123%, as third parties sought
to exaggerate and inflate the cost of repair
and credit hire claims. As highlighted
by Aviva in 2022, organised whiplash
fraudsters have refocused their efforts
on the repair aspects of a motor claim,
including credit hire and repair. Aviva has
bIZ4BIZ INSIGHT MAGAZINE | SEPTEMBER 2024
witnessed particular growth in motor
damage fraud after the Whiplash Reforms
came into effect in 2021, signaling a shift in
focus for organised fraudsters.
SPOOF ADS
Though not technically fraud, the use of
‘spoof ads’ on internet search engines by a
small number of unscrupulous claims and
accident management companies (CMC /
AMC) continues to mislead customers into
thinking they are contacting their motor
insurer to claim for an accident they’ve
had.
The trouble arises when the at-fault
insurer challenges the inflated costs
presented by the CMC or AMC. The claims
company will then pressure the customer
into paying, as they will have signed
contracts obliging them to pay if the
repair, credit hire and other costs can’t be