Insurance Claims Fraud Up By 13% In 2021

The leading UK insurer, Aviva says that the proportion of insurance claims tainted with fraud grew by 13% in 2021. 

Key points gathered from their research, found that:

• Aviva uncovered more than 11,000 instances of claims fraud in 2021, worth more than £122m.
• Aviva has more than 16,700 claims under investigation for suspected fraud.
• Early signs that organised whiplash fraudsters are moving into vehicle repair/replacement claims.
• Fraud volumes expected to increase further as cost of living increases are felt by consumers.
• Home insurance fraud volumes up by 45% – the highest in seven years.
• Consumers warned to be vigilant against insurance offers from unclear, unsolicited sources.

Aviva’s research also revealed that the most common fraudulently claimed-for items are mostly technology gadgets:

• Mobile phones
• Televisions
• Laptops
• Tablets
• Jewellery      

Waseem Malik, Chief Claims Officer, Aviva UK General Insurance, said, “Fraud is typically committed for reasons of need or greed, and we believe the increase in claims fraud last year is linked to reduced incomes during Covid lockdowns.

“As more households and businesses come under increased financial stress due to the cost of living crisis, we expect to see more claims fraud, especially on home, small business and liability insurance policies. Insurance fraud is a crime, and we are continuing to invest in strengthening our fraud defences to protect genuine customers from the impact of fraud and to keep premiums low.

“We will also be keeping a watchful eye on motor injury fraud this year, to see if it declines as the Whiplash Reforms bed in. Although it’s early days, we are starting to see some signs that organised fraudsters involved in motor injury fraud are moving into the repair side of motor claims, as well as liability frauds such as slips and trips.”

Aviva Article: https://www.aviva.com/newsroom/news-releases/2022/05/insurance-claims-fraud-up-by-13percent-in-2021/

^{* All figures are based on Aviva’s own figures for the general insurance fraud it detected in 2021.}