Allianz Commercial stops nearly £40m worth of fraud in H1 2023

Allianz Commercial UK has highlighted the fraudulent behaviours scammers are adopting as it revealed that its claims team stopped just under £40m worth of fraud in the first half of 2023.

Figures from the insurer, which were sent to Insurance Times, showed scammers tried to trick the firm into paying out £38.4m in the first six months of the year, with over half of that being related to casualty fraud.

The firm said that exaggeration within claims was a key trend during H1 2023, adding that there was increased fraudulent behaviour around claims farming.

In the application fraud space, Allianz Commercial revealed that there had been higher prevalence of phoenix companies as well as an increased level of false no claims discounts and confirmed claims experiences (CCEs).

The firm also found that ghost broking was showing signs of growth.

Savings

Despite a rise in fraudulent activity, however, Allianz Commercial revealed that it saw a £2m increase in fraud savings year-on-year.

The firm said this highlighted improvements it had made with early detection and the analysis of data from machine learning, which assists in finding suspect claims.

To demonstrate this, the insurer highlighted a case where it had to deal with a major fire at a clubhouse.

Appointed loss adjusters and forensic investigators uncovered false documentation provided to Allianz Commercial from a contractor who allegedly made safe the electrics at the property prior to the fire occurring.

The full investigation led to the claim being declined, which resulted in a saving of just under £2.4m.

James Burge, head of counter fraud at Allianz Commercial, said: “Our experienced investigation teams are utilising our new machine learning tool to enable them to identify claims earlier and more quickly, ensuring that those who falsify all types of claims are fully investigated and held accountable.

“We want to ensure our law abiding customers are fully supported and covered with the right levels of insurance, this is even more important during these difficult times.”