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Daily Insurance Industry News
Monday 21st of May 2018
August 30, 2011

AXA warns against ghost brokers

by Richard Kilner

Story link: AXA warns against ghost brokers

AXA warns against ghost brokers

Car insurer AXA has warned that as many as twenty thousand British motorists may be the victims of so-called ghost insurance brokers, and therefore have invalid car insurance.

The last few years have seen AXA observe increasing numbers of customers whose alleged broker has submitted false information (accurate information would have caused a higher premium or an outright rejection).

With motor premiums already high and rising, certain groups find it particularly difficult to get competitive coverage and it is these groups that the ghost brokers target.

The broker then contacts an insurer and offers only certain details, causing the premium to be artificially lowered and the insurance to be invalid.

AXA has contacted a thousand customers whom it believes may have suspicious insurance coverage, to help them ensure their policy details are accurate and their insurance is valid.

Head of Counter Fraud Steve Gaywood said that unscrupulous individuals were taking advantage of the high car insurance premiums to con people into buying invalid insurance.

AXA advises people to check the validity of their broker, either by searching the British Insurance Broker’s Association (B.I.B.A) website or by going to an insurer directly.

 

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