IFB seeks data-swap deal with police forces

The Insurance Fraud Bureau is negotiating with police forces across the UK to cut the red tape that hinders information swaps about suspected fraudsters.

The umbrella agreement would enable the IFB, which this week published its new three year strategy, to obtain information from forces without having to make a formal request under the data protection rules.  The bureau already has such agreements with a number of police forces across the UK.

The information sharing initiative is designed to underpin the IFB’s drive to curb motor application fraud, identified in the strategy as an increased area of focus for the IFB over the next three years.

The plan, which was outlined at a meeting with member companies at the ABI this week, seeks a 25% increase in the IFB’s budget to £2.8m in 2012, rising by a further £150,000 in 2013.

The extra cash will enable the IFB to double its headcount, which the organisation’s outgoing director Glen Marr said would enable it to make better use of its existing fraud detection software

The strategy has set a goal of netting half of the sophisticated fraud rings operating in the UK, compared to the estimated 20% that it currently snares, with the extra  capacity.  Each of these rings is responsible for hundreds of claims or thousands of bogus applications, Marr said.

The strategy also splits the IFB’s board into two bodies, one consisting of directors who report directly to chief officers and another more technical group to handle more bread and butter issues. 

IFB board chair David Neave said:“Undetected insurance fraud is estimated to be costing the industry £2bn per annum, with motor fraud representing a sizeable element of these losses. “Much is already being done as insurers are annually spending well in excess of £100m on preventing or detecting fraud. Of this less than 2% is spent on the industry platform to tackle organised fraud – the IFB.

“With the new resource levels identified in the long-term strategy, sufficient steps can be taken to bolster in-house systems and processes and the industry’s ability to tackle organised crime, all of which to the benefit our industry partners and consumers”.