Sedgwick’s fraud strategy saves over £35m

Sedgwick has today reported a saving of £35.2m across home, commercial, motor and liability claims in 2019. This represents an increase of £5.4m (18%) on 2018. Commercial claims accounted for the largest proportion of this saving, at £14.8m.

Steve Crystal, head of financial crime at Sedgwick International UK said all lines had seen an increase. “We’re pleased that our strategy of working in partnership with our clients has seen us protect their reputations and save them money with a strong counter fraud performance in 2019.

"We’ve noted an increase across all products, most notably motor and liability; the latter has seen a steady rise across the last few years. Commercial claims fraud, which can be variable, was the largest component at £14.8m and home claims fraud once again saw a high volume of lower value cases, reflecting the more opportunist nature we’ve seen in this product over the last five years.”

The firm anticipates that false claims will continue to develop, adding that claims fraud doesn’t always lend itself easily to statistical analysis because the rules of the game aren’t fixed.

“We’re investing in technology, but it’s our experts who make a difference when it matters. Perpetrators think differently, often randomly, and motives/methods change. AI tools, coupled with better cross industry collaboration, are at the heart of our activity, but we shouldn’t underestimate the resolve of some fraudsters and their determination to beat the system," Crystal added.

"Fraudsters who deliberately invent claims will no doubt invest energy to work out how to exploit weaknesses in fraud defences. That’s why our approach is geared to tackling those who will always seek to find ways to bypass detection measures, with our experts interpreting what the fraud analytics are telling us.”

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