Explore Aviva’s advanced fraud detection and prevention strategies in 2024, ensuring secure and trustworthy insurance services.
In 2024, Aviva reported a significant 14% increase in the number of insurance claims it declined due to fraud, identifying over 12,700 suspect claims valued at £127 million. This amounts to an average of around 35 fraudulent claims per day, equating to approximately £349,000 daily. The insurer continues to scrutinize an additional 14,600 claims for potential fraud, following a marked 39% increase in detected claims fraud in 2023.
Beyond claims, Aviva highlighted more than 98,000 fraudulent insurance applications during 2024, nearly doubling the figures from the preceding year. Pete Ward, head of claims counter fraud at Aviva, emphasized that most customers are honest, and the firm’s commitment to swiftly resolve claims remains steadfast. Aviva invests significantly in analytics, machine learning, and training to bolster fraud detection capabilities.
The UK insurance fraud landscape has experienced notable shifts from 2020 through 2024. In 2023, insurers uncovered 84,400 fraudulent claims, marking an increase of 11,800 cases compared to the prior year. The total value of these fraudulent claims reached £1.1 billion, a 4% rise from 2022, with an average fraudulent claim valued at around £13,000.
Motor claims constituted approximately 75% of all fraudulent activities detected. Though ‘crash-for-cash’ schemes have declined, there is a noticeable trend towards exaggerated injury claims and inflated repair and credit hire costs. Consequently, dishonest claims for motor damage surged by 24% in 2024. Since 2021, fraudulent activities involving motor damage and credit hire have skyrocketed by 275%.
Aviva also identified persistent issues with ‘spoof ads’ posted by certain claims and accident management companies (CMCs and AMCs). These deceptive advertisements often mislead motorists searching online for their insurer’s contact details post-collision. Mistaking these entities for their own insurer, motorists inadvertently engage in services that lead to disputed charges, occasionally reaching up to tens of thousands of pounds.
In terms of public liability fraud, there was a 12% increase in 2024, which Aviva attributes partly to organized fraudsters shifting focus following whiplash reforms. These frauds typically involve staged slip, trip, or fall incidents. Fraudulent employer’s liability claims, however, remained relatively stable.
Household insurance fraud now accounts for one in every ten detected cases, primarily opportunistic, involving inflated or fabricated claims for personal items, including mobile phones, televisions, jewellery, laptops, tablets, and watches.
Commercial insurance fraud also exhibited significant increases, with fraudulent property claims rising by 89% during the year. Exaggerated claims are often facilitated by third-party claims professionals, with a notable increase in claims related to escape of water. Commercial motor fraud rose by 14%, mainly driven by exaggerated claim costs.
Fraudulent applications nearly doubled from 2023 levels, surpassing 98,000 cases. Aviva attributes this surge to enhanced detection capabilities and improved staff training. Within this figure, an 18% rise in ghost-brokered policies was identified, with an additional 8,600 cases linked to ongoing ghost broking investigations. Aviva concentrated efforts on identifying these cases at the quote and application stage to mitigate risks, especially among young drivers.
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