"organised criminal gangs and individuals or households who deliberately invent or expand claims will invest their time and experience to understand how best to exploit any perceived weaknesses in the ability for the insurer to defend itself against fraud. Once this is understood and they have worked out how best to do this, expect them to quickly act – velocity of fraud is definitely on this rise"
Source "Fraudsters love Digital" Insurance White Paper published by SAS
Insurers look to insurtech to speed up the customer claims journey from FNOL to settlement but there is a danger that this will let in more fraud from digitally savvy claimants and criminals.
AI is no answer if, as is usually the case, insurance companies and brokers can only access and analyse 10% to 20% of the data they hold on claimants and claims.
Look for a digital platform that will unlock the 80% to 90% of unstructured data and apply key fraud indicator rules to point fraud investigators to the 10% of probably fraudulent claims.
13 February 2017 Over 100 claims were connected to the gang, impacting 16 different insurers 14 people charged as part of the fraud which had a potential cost of over £500,000 The trial of a large-scale crash for cash gang, whose activities were exposed following an investigation between the Insurance Fraud Bureau (IFB) and Derbyshire Police, has today (Monday 13 February) concluded with five defendants found guilty. In total, 14 individuals were charged with Conspiracy to Defraud, seven of which pleaded guilty at the start of the trial. This includes the individuals who orchestrated the fraud and owned the businesses as well as the claimants who provided their details for use as part of the fraud.