Autonet Insurance

Autonet Insurance

June 20, 2011 11:08 ET

Autonet Insurance: Clamping Down on Insurance Fraud

BURSLEM, UNITED KINGDOM--(Marketwire - June 20, 2011) - Autonet warns motorists that Insurers are working even harder on their relentless crackdown on insurance fraud. Fraudulent and dishonest claims are a major issue for insurers costing the insurance industry an estimated 2bn per year of undetected general insurance claims fraud according to ABI (Association of British Insurers). Fraud is a massive contributory factor to the steep rise in insurance premiums, adding on average £44 to every premium paid by honest consumers each year and even making certain areas of the UK uninsurable.

Over the years, insurance fraud has taken various forms including policy fronting (where the named driver is actually the main driver), staged collisions, application fraud (where people omit incorrect details) and identification fraud.

The creation of comparison websites has also contributed to a rise in insurance fraud, consumers using such sites to manipulate information in order to lower their premiums and in effect arrange a policy that does not marry up with their own risks. Rising motor costs, and the economic downturn can be to blame for this type of fraud as consumers look to save money.

So, what are insurers doing?

Insurance companies employ several different tactics in order to reduce fraudulent activity, making use of Claims and Underwriting (CUE) to monitor and highlight claim trends, keep databases of claims payments and compare new claims against historical data. Insurance companies also rely on tips and leads from law enforcement officials, businesses and individuals to detect fraud.

In November 2010, a pilot scheme was announced which will allow insurers to link to DVLA records to check that policyholders have accurately completed their insurance application. Data protection laws currently mean that insurers need to ask the policyholders permission before accessing such records, but if the pilot proves successful, a DVLA check may become a condition of the policy in 2011. Insurers have also been investing in new ways to detect fraud. Admiral has implemented a new FICO Analytics system to detect more fraud including exaggerated, bogus and false claims in order to reduce the cost of fraudulent claims. Admiral estimates that implementation of this new system will save the company millions of pounds in fraudulent claims payments.

Glynn Keeling, Chairman of Autonet Insurancecommented: "The cost of insurance fraud is immense which has inevitably led to insurers using a variety of anti-fraud techniques to detect and deter such activity. We currently conduct rigorous security checks and work very closely with insurers to help identify any possible fraud, anyone responsible for insurance fraud could face serious consequences."

Autonet insurance warns, following the initiative set by Admiral will expect to see a growth in both insurers' and brokers' anti-fraud techniques and technologies which will be evident across the insurance industry during 2011.

Contact Information

  • Autonet Insurance
    Daniel Picken
    0844 4430 188