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Insurance companies are sleeved up for fraud auto claims

Association of British Insurers (ABI) has recorded a rise in number of fraudulent claims submitted to insurance companies every year. It was reported that one out of every 14th claim is a fraud and intentional attempt by dishonest motorists. Some claims falls in the category of fraud claims due to motorists’ ignorance or mistake, but not all.

Insurance governing agencies are coming up with new approaches and measures to control this dishonesty in the business. ABI launched a new nationalized database- The Insurance Fraud Register to help insurance companies in fighting against the fraud charges. This database will store all vital information about fraud claims submitted and the applicants for future records. So if someone tries to submit a fraud claim and it gets denied, the next time when a claim will be submitted by the same applicant, it will automatically raise the eyebrow of the claim adjudicator and it will undergo strict claim consideration process.

Ageas, has also taken an initiative to handle the increase in fraud claims coming its way by signing up to the Syndicated Intelligence for Risk Avoidance (SIRA) anti-fraud database from Synectics Solution. This database will allow the insurer to perform a check at every stage of underwriting and verifying claims before paying for it. It will also help in identifying third party claimants that have previously been involved in fraudulent activity.

If all insurance companies get awakened and take steps against fraud claims, then it will account for an annual savings of 541 million euros. Centralized databases have always been a great resource to save and share industry critical information. This can mark beginning of a new revolution in the insurance niche if this tool is used effectively and efficiently.

In my upcoming post I will try to gather some information on how honest citizens can be careful while submitting claims and avoid getting into fraudulent activities unintentionally. Stay tuned in!

Article written by the marketing division of CompareCom

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