Allianz Commercial on track for fraud-busting record
Opportunistic fraud on the rise
Allianz Commercial has successfully prevented £36.8m worth of insurance fraud in the first six months of the year, with marked increases in the property and casualty sectors.
The fraud investigators at the business insurance provider are on track to beat their record from 2021, when they busted £65.8m worth of scams over the course of a full year.
The £36.8m of fraud they detected in the first half of 2022 represents a 23% increase over the same period last year.
The H1 2022 fraud savings are distributed as follows:
- £17.3m in casualty (+26.6% over H1 2021)
- £10.3m in property (+40.6% over H1 2021)
- £9.2m in motor (+2.8% over H1 2021)
The 2021 whiplash reforms, with the Official Injury Claim portal, seem to have helped contain motor fraud. Crash-for-cash gangs continue to operate, targeting last-mile-delivery vans among other vehicles, but the rise is muted.
The increase is much more pronounced in commercial property and casualty.
Allianz Commercial has identified three trends, fuelled by the financial difficulties faced by both people and businesses:
- individuals lying about personal injuries to bring a claim against a business
- small businesses exaggerating what started as a genuine claim
- applicants falsifying documents to obtain a cheaper quote
Recent cases include:
- After a theft, a small shop claimed for a fire in order to receive a larger payout.
- A man who injured his Achilles tendon said he’d slipped on a wet floor at work, but a judge found it happened outside of work.
- A worker whose arm was lacerated in a forklift accident falsely claimed he hadn’t received training and refused to elucidate the circumstances of the accident. A court found the claim fundamentally dishonest.
- A small business falsified its prior claims history to obtain cheaper fleet insurance.
James Burge, head of counter fraud at Allianz Commercial, commented:
“With every economic downturn, insurers see a rise in fraud. At the moment, at Allianz Commercial, we’re particularly wary of opportunistic fraud, whether it is committed by or against businesses. Our teams are doing a great job of detecting dishonest claims and we’ll maintain our efforts to make sure that payouts go to genuine claimants. When times are hard, we need to help customers and claimants who actually need our support.”
Authored by Allianz
Allianz Insurance is one of the largest general insurers in the UK and part of the Allianz Group, a leading integrated financial services provider and the largest property and casualty insurer in the world.
The mission of Allianz Insurance is to be the outstanding competitor in our chosen markets by delivering products and services that our clients recommend, being a great company to work for and achieving the best combination of profit and growth. We aim to achieve this by putting the customer at the heart of everything we do.
Allianz is able to offer customers a wide range of products and services including home and motor and commercial insurance with full range of products and service for sole traders' right up to large commercial organisations.
Allianz Insurance employs over 4,500 people across a network of 20 offices in the UK and the company’s Head Office is situated in Guildford, Surrey. Our heritage and financial strength help make Allianz what it is today; a safe and trusted partner. Over 40 FTSE100 companies partner with Allianz. youTalk-insurance sharing Allianz Insurance news and video
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