Allianz detects record insurance fraud volumes of £70.7m

Allianz Commercial detected £70.7m worth of insurance fraud in 2022, up from the £63.6m in 2021 - an uptick of 11.2%.

Property and casualty saw the greatest increase in fraud savings against the prior year, something the insurer says may potentially be attributed to a move away from traditional types of motor fraud such as crash-for-cash. The industry continues to see vastly exaggerated motor claims, however.

Across P/C, while the number of fraud cases declined last year, the value of each case increased to record levels.

Application fraud has also grown significantly, suggesting front-end controls are detecting these lies and fabrications more effectively.

Regarding fraud at claims stage, machine learning has been increasingly helpful in detecting dishonest attempts.

James Burge, head of counter fraud at Allianz Commercial, commented: “At each economic downturn, insurers usually see fraud escalate. In the midst of a cost-of-living crisis, we didn't want our honest customers to bear any additional costs from fraudsters, which is why we were determined to detect and defeat fraud in order to protect them.”

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