Aviva Reports 39% Surge in Detected Fraud Cases in 2023
Insurance fraud is a serious issue that affects not only insurance companies but also honest policyholders who end up paying the price for the actions of criminals. In a recent report, insurance giant Aviva revealed a shocking 39% jump in detected instances of fraud in 2023 compared to the previous year.
Aviva uncovered over 11,000 suspect claims totaling £116 million in 2023, with the majority of these claims relating to motor insurance. This included injury and vehicle damage claims, many of which were found to be exaggerated or opportunistic in nature. The insurer also noted a significant increase in motor damage fraud, as criminals shifted their focus following a whiplash clampdown in 2021.
To combat this rise in fraudulent activity, Aviva has increased the number of employees dedicated to investigating fraud and provided additional training for staff. The insurer has also identified fraud on over 51,000 motor policy applications in 2023, a 64% increase from the previous year.
One concerning trend highlighted by Aviva is the rise of “ghost brokers” who sell policies using false information to obtain cheaper insurance. This not only puts policyholders at risk of driving without valid insurance but also contributes to the overall cost of insurance fraud.
Pete Ward, head of claims counter-fraud at Aviva, emphasized the company’s commitment to defending against fraudulent claims and prosecuting those who target the insurer. He stressed the importance of investing in counter-fraud capabilities to protect genuine customers from the financial impact of fraud.
In addition to motor insurance fraud, Aviva also detected an increase in fraudulent “slips and trips” claims as well as household fraud involving items such as jewellery, mobile phones, and electronics.
As insurance fraud continues to evolve and adapt, it is crucial for insurers like Aviva to remain vigilant and proactive in detecting and preventing fraudulent activity. By investing in counter-fraud measures and educating both employees and customers, insurers can help protect honest policyholders and maintain the integrity of the insurance industry.