Move to Cut Insurance Industry Fraud

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Computers have revolutionised the way we go about our everyday lives, and now the insurance industry is turning to technology and the amount of data we create every day to try to identify fraudsters and reduce premiums.NEWS

It’s estimated current insurance fraud levels in the UK are around £2.1 billion a year, and this adds £50 onto each and every policy we buy. Reduce the fraud, and the industry can become even more competitive.

Big Data

Computer software can look at patterns of behaviour, and quickly pick up when unusual claims and behaviour is happening. Technology, particularly ‘big data’, can be used to look at where frauds are happening, identify geographic trends and even look at what policyholders who are making suspicious claims are posting on their Facebook pages and Twitter feeds. The insurance industry has also set up the Police Insurance Fraud Enforcement department, tasked with investigating large scale insurance frauds. In the first seven months of its operation in 2012, the new department arrested 120 people.

Policyholder benefits

It’s not a nice feeling knowing that we are all paying extra on our home insurance policies to compensate for the activities of the fraudsters. All of the big data software analysis and police task forces may seem like Big Brother, but if it saves each household £50 on their policies is that not a good thing? Policy prices are increased across the board to account for the fraudulent transactions, so even if you follow the advised method of comparing policies and getting lots of quotes you still end up paying. So from the point of view of an honest consumer, increased measures to combat fraud are most definitely a step in the right direction.

Policy Expert
Our dedicated customer service team is always on hand to help – either online or over the phone. Whether you want assistance in finding the right policy or even handling a claim, we make sure it’s all handled by experts. For more information speak to one of our experts on 0203 014 9300 or email ask@policyexpert.co.uk

 

The views expressed here are solely those of the author and do not necessarily reflect the views of Policy Expert.