DAC Beachcroft predicts poorer workplace safety and increased claims fraud in 2021

DAC Beachcroft believes insurers will come under pressure in the months ahead from an uptick in deteriorating workplace safety and fraudulent claims.

The law firm said: “A global recession will inevitably lead to more cost-cutting, insolvencies and greater business uncertainty. We predict that in some industries this will mean reduced investment in plant and training, resulting in some employees being asked to fulfil roles for which they do not have the requisite competence or equipment.

“This will in turn lead to an increased risk of workplace incidents and a subsequent rise in claims and HSE enforcement action.

“Casualty claims fraud is also expected to rise. The correlation between casualty claims fraud and recession is well documented. Exaggerated and fabricated claims in particular will rise as a result of the increased proportion of people motivated by financial hardship.

“Claimants will take advantage of the lockdown measures and data tells us claimant solicitors’ behaviour is already changing in response.”

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