Fraud: More Suspect Hearing Loss & Storm Damage Claims, Says Allianz

It’s always wise to keep up with the latest trends in fraud and attempted scams across the insurance sector. The latest word from Allianz UK’s fraud teams is that they are seeing a marked increase in fraudulent noise induced hearing loss and fake or cloned businesses claims coming through in the first half of 2024. Here’s some detail;

The claims teams at Allianz UK have achieved a saving of £37.7m in detecting fraudulent claims within the first half of 2024 with a significant portion of fraud savings coming from casualty fraud – with major loss fraud contributing heavily.

The integration of machine learning tools, such as Incognito, has significantly contributed to the overall increase in fraud detection, enabling more sophisticated analysis and identification of fraudulent activities, which has led to a 3.5% increase in fraud detection, with motor claims seeing a continued increase in detection.

Allianz’s casualty fraud teams are continuing to see fraudulent claims related to Noise Induced Hearing Loss and recently had two cases dismissed in court by the judge for fundamental dishonesty. In both cases the judges ruled that the defendants were entitled to enforce their costs from the claimants. Allianz continues to see an uptick in casualty fraud led by professional enablers.

STORM SEASON

With the increase in more adverse weather, particularly with autumn and winter storms, the property team are seeing an increased trend in pre-existing storm damage claims, where claims are being submitted for damage that exceeds likely storm damage with the hopes of claiming for the additional pre-existing repairs.

Despite a rise in underwriting and application fraud across the industry, the support and training that we give to our underwriting colleagues, has resulted in a 15% increase in fraud savings, highlighting the positive effect that this awareness has had on our ability to detect more cases earlier. The application fraud team continued to observe increases in fake or cloned businesses trying to obtain motor fleet insurance using falsified Confirmed Claims Experience documentation.

James Burge, head of counter fraud, Allianz Commercial commented: “Our half-year fraud results reflect our relentless efforts to protect our customers and maintain the integrity of our services. The fraud teams have shown continued determination in rooting out those who falsify all types of policy and claims. Our investments in technology, such as machine learning and AI, training, and collaboration across the industry and broker network are paying off, and we remain committed to staying ahead of fraudsters.”

“Our strong collaboration with brokers has further heightened their fraud awareness and detection and at Allianz we continue to champion commercial fraud management. By sharing our insights and strategies with our industry partners and supporting the Commercial Fraud Intelligence Group (CFIG) we are ensuring that all customers can benefit by building a more vigilant and stronger industry.”