Sedgwick has provided an update on how much it was able to save clients in 2019 thanks to its claims fraud strategy.
The claims management giant revealed that it had seen an overall improvement in value and volume when compared to 2018, with the value of Sedgwick’s fraud savings for clients last year reaching £35.2 million.
The £35.2 million saved was an increase of £5.4 million (18%) over 2018 across home, commercial, motor and liability claims.
Sedgwick, which has 80 colleagues working in dedicated counter fraud roles, added that the volume of claims with fraud savings was ahead of the latest rate published by the Association of British Insurers.
“We’re pleased that our strategy of working in partnership with our clients has seen us protect their reputations and save them money with a strong counter fraud performance in 2019,X said Steve Crystal, head of financial crime at Sedgwick International UK.”
“We’ve noted an increase across all products, most notably motor and liability; the latter has seen a steady rise across the last few years. Commercial claims fraud, which can be variable, was the largest component at £14.8 million and home claims fraud once again saw a high volume of lower value cases, reflecting the more opportunist nature we’ve seen in this product over the last five years.”
In its end of year fraud review, Sedgwick anticipates false claims will continue to develop, noting that fraud doesn’t always lend itself easily to statistical analysis.
Crystal explained: “We’re investing in technology, but it’s our experts who make a difference when it matters. Perpetrators think differently, often randomly, and motives/methods change. AI tools, coupled with better cross industry collaboration, are at the heart of our activity, but we shouldn’t underestimate the resolve of some fraudsters and their determination to beat the system.”
“Fraudsters who deliberately invent claims will no doubt invest energy to work out how to exploit weaknesses in fraud defences. That’s why our approach is geared to tackling those who will always seek to find ways to bypass detection measures, with our experts interpreting what the fraud analytics are telling us.”
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