Value of general insurance claims fraud falling, finds Aviva

Aviva detected £80 million worth of fraudulent general insurance claims last year.

The value of suspected or proven fraudulent general insurance claims did fall by 11% (£10 million) in 2018.

Cracking down on cash-for-crash fraud, better fraud prevention strategies and new legislation have all forced fraudsters to explore non-whiplash cons such as bogus slip-and-trip claims, according to Aviva.

Aviva cited the potential impact of whiplash reform on motor injury fraud, whose value has fallen by 10%, while organised fraud such as crash for cash fell by 12.5%.

The insurer added that while its figures represent tangible progress in the fight against motor insurance fraud, the scale of detected claims fraud remains a major issue for genuine customers.

Motor insurance still accounts for two-thirds (66%) of all suspected or proven fraud detected by Aviva and one in seven whiplash claims received by the insurer are rejected for suspect or proven fraud.

Aviva said it’s currently investigating around 13,000 suspicious motor injury claims.

Commenting on the annual fraud figures, Tom Gardiner, head of fraud at Aviva UK General Insurance, said, “We are pleased to see that the continued investment and focus we have given to prevention and detection is starting to reduce the impact of fraud for our genuine customers.”

“We are also working hard to ensure that there are consequences for fraudsters. We have 172 cases currently under investigation with the police, and last year we worked with enforcement agencies to help to prosecute 58 instances of fraud, securing custodial sentences of over 68 years—which we hope will serve as a strong deterrent to people considering insurance fraud in future.”

Mark Dugdale