Daily briefing: Tuesday - Brokers join fight against fraud

For so long the battle to overcome insurance fraud has been led by insurers. They have funded a whole host of initiatives, such as a £9m anti-fraud police squad earlier this year. But insurance fraud is not just limited to insurers; it’s a menace for the entire industry, as today’s developments at the Insurance Fraud Bureau (IFB) have highlighted.

In a new chapter in the fight against fraud, brokers are now signing up to the bureau to lend their expertise as part of a new broker affiliate model. It will see brokers working hand in hand with the IFB, insurers and other closely linked partners and organisations, in what is being described as a “logical step” by IFB top brass.

High street broker Swinton set the ball rolling and became the first broker to sign on the dotted line today, and the IFB already has big plans in place to attract the attention of the wider broker market. Some might ask why it took so long.

Beyond personal

For now, the IFB’s broker offering will focus on the largest retail brokers, which already have counter-fraud operations in their armoury. For brokers like Swinton, which have big exposures to fraud-hit sectors like motor and household, the move makes sense.

But how attractive will the scheme be to other brokers, particularly those that focus almost exclusively in the commercial and corporate arenas? And how many brokers currently have dedicated counter-fraud resources in place? The IFB will undoubtedly look to answer these questions and others when it links up with Biba next year to outline its approach for the wider market. The more the merrier, as they say.

Jelf steps it up

Other broker news today saw Jelf become the latest firm to be awarded the CII’s chartered broker status. In a tough trading environment brokers are searching for ways to stand out from the crowd, and becoming chartered is one of the ways they are opting to do this, as CII director general Sandy Scott recently explained in a video interview.