Aviva launches real-time fraud screening tool to check 550,000 motor quotes a day


Tool has helped Aviva to identify 20% more fraudulent insurance applications

Aviva avoided more than 14,000 policies due to detected fraud in 2017

Aviva has launched a unique fraudulent behaviour identification tool that enables the UK’s largest insurer to screen 550,000 motor insurance quotes every day, in real-time. The device is detecting 20% more fraudulent insurance applications while reducing the number of fraudulent claims Aviva is subject to in the future. 

Real-time fraud screening helps Aviva to identify insurance applications where material facts about the applicant or what they are insuring have been repeatedly changed in order to obtain cheaper insurance premiums or purchase insurance that they otherwise would not be able to.

For example, if someone tries to change the postcode where they live in order to get a cheaper quote, the new tool will identify anomalies for investigation. To illustrate the point, Aviva recently detected a quote from ‘Mr A’ for a car at a residence in Birmingham. The premium, based on the information received, was more than £4,000. The applicant proceeded to apply for cover using a further 12 addresses, in locations from London to Inverness. It was the latter location where he finally purchased the policy for £490 – just 12% of what the premium should have been.

However, Mr A incepted the policy using an address where Aviva already insure the genuine resident (Aviva insures 15.5m people in the UK, so this is not uncommon). Aviva contacted the customer and confirmed that Mr A does not reside at the address in Inverness, and Aviva was able to immediately void the policy.

By detecting people who provide false information to purchase a policy or misrepresent themselves or the risk they are insuring, Aviva is preventing fraudsters and gangs from buying policies with the express intention of submitting fraudulent claims; this, in turn, protects customers from having to bear the cost of such claims.

Research by Aviva found that policies which are fraudulently purchased have up to a 350% greater risk of generating a fraudulent claim. By taking action to prevent fraud at the point of sale, Aviva is able to devote more time and resource to our genuine customers and keep premiums low for them.

Genuine customers will continue to find it easy to buy a policy and make a claim – there is no change to how customers buy their motor cover from Aviva online.  The fraud tool is fully automated, with each policy application taking less than one second to screen for potential fraud. The solution has worked extremely well on private car quotes across Aviva, QuoteMeHappy and General Accident brands, and Aviva has now rolled the screening out across broker channels.

Brokers will benefit from Aviva’s fraud detection tool, too, as it reduces their own exposure to fraud and the negative impact that can have on their business – such as bad debt accrued from insurance applicants who don’t intend to pay their premiums.

Tom Gardiner, Head of Fraud, Aviva UK General Insurance, said, “We know the overwhelming majority of our customers are honest. By screening applications at the point of quote we are stopping fraudsters from accessing our products, keeping premiums low for genuine customers, and taking friction out of the process when customers come to claim – enabling our staff to focus on servicing our customers.”

Fraud Trends

Earlier this year Aviva reported a 5.4% increase in the value of detected fraud in 2017, worth £90m (2016: £85m) – or £246,000 of fraud every day. This increase has been driven by Aviva’s continued significant investment in technology and people. Last year the insurer avoided more than 14,000 policies where the applicant had known links to fraud.

Tom continued, “We have moved the fight against claims fraud from ‘detection’ to ‘prevention’, from the point of claim to the point of sale, and from post-sale to real time. We’re finding 20% more fraud that previously went undetected. By identifying suspicious behaviour at point of purchase, we’ve been able to provide our claims teams with more time to focus on genuine customers, providing a better claims experience while keeping our premiums low.”



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