Keoghs warns insurers about rising fraud
by Richard Kilner
Story link: Keoghs warns insurers about rising fraud
Counter-fraud firm Keoghs has warned that insurers need to improve their methods of detecting and preventing fraud as the volume of liability fraud rises and the frequency of of exaggerated or fictional claims increase.
Compared to 12 months ago Keoghs has seen a 150% rise in liability fraud cases referred to the firm, with suspicious low-speed impact claims up 63%.
James Heath, director of counter-fraud strategy, has attributed the increase in fraud to two factors, namely the recession encouraging opportunists to behave deceptively and improved detection methods initially pioneered in the motor insurance sector.
The industry is widely expecting the upwards trend of fraud to continue, following the ABI’s recent figure of more than 2,300 fraudulent claims being exposed every week.
The total value of fraud has increased by 14% year-on-year, to stand at £840m, according to the most recent statistics.