UK households issued £19, 000 warning and insurance provider says 'it's fraud'

Originally published by BirminghamLive on March 11, 2024.

Zurich issued a warning as property insurance fraud investigations more than doubled in December 2023 compared to the prior year. The insurer prevented £78.5 million in fraudulent claims across its general business in 2023, averaging £215, 117 per day. Property fraud alone accounted for £15.5 million in detected false claims, with each identified case averaging £19, 058.

The insurer attributed its detection success to sophisticated data analytics that identify fraud patterns and networks. Zurich employs Carpe Data to screen personal injury claims against internet activity for signs of suspicious behavior. The system works alongside various investigative tools to validate claims and detect organized fraud rings.

Scott Clayton, Head of Claims Fraud at Zurich, noted the increasing sophistication of fraudsters, sometimes involving highly organized criminal gangs. He emphasized the importance of combining latest detection technology with human intervention to combat fraud and protect honest customers.

The Insurance Fraud Enforcement Department at City of London Police acknowledged that cost-of-living pressures might tempt more people toward fraudulent claims. However, authorities warned that such actions carry serious consequences, including difficulty securing future coverage and potential criminal convictions. The department welcomed industry efforts to detect fraudulent activity, noting that insurance fraud increases premiums for all policyholders.

Read the full article at BirminghamLive.