Keoghs’ counter-fraud team saves insurers £156m

Keoghs, the Bolton based legal services provider, has helped insurers avoid paying £156m for suspected fraudulent claims in its last financial year, a 26% increase on 2012.

The company reports that incidences of fraud have increased across the board, but the area with the biggest savings increase was in induced motor claims, with savings increasing by 72% to over £11m.

The effects of legal reforms have also seen fraud move into non-motor areas including liability fraud.

Keoghs’ director of fraud rings Ruth Needham said: “It is fair to say that fraudsters are becoming increasingly aware of what insurers look for to identify fraudulent claims and fraud rings, and they are adapting their strategies accordingly. For example, we have seen fraud ring activity spread beyond the major conurbations where they have historically operated to smaller towns and cities and recently even into rural areas.”

Keoghs’ director of counter fraud strategy James Heath added: “It’s clear that fraudulent claims will continue, and as insurance fraudsters tackle new areas of weakness we have to be ready to defend spurious claims.”