Aviva detected 39% surge in claim fraud across 2023

Aviva detected a 39% increase in the number of claims it declined because of fraud across 2023. 

The insurer said that it uncovered more than 11,000 suspect claims worth a total of £116m, which was equivalent to 30 bogus claims per day, and added that it was also investigating a further 13,100 claims for suspected fraud.

Fraudulent motor claims for injury and vehicle damage accounted for two out of three (66%) of detected fraud cases. 

Motor injury claims accounted for 35% of all bogus claims, with the number of fraudulent injury claims declined for suspected fraud growing by 19% to become worth more than £23m. 

Aviva specified, however, that a large proportion of these bogus injury claims were opportunistic in nature and brought by third parties. 

Fraudulent damage claims also surged by 123%, with the insurer noting that organised whiplash fraudsters had “refocused ther efforts” on the repair aspects of a motor claims, including credit hire and repair.

A vigorous defence

Aviva explained that it had doubled the number of employees dedicated to investigating fraud in an effort to combat fraudsters and defend their customers from its effects. 

Pete Ward, Aviva’s head of claims counter fraud, said: “We’re here to help our customers when something’s gone wrong, settling their claim quickly and fairly. But where we detect fraud, we will vigorously defend fraudulent or inflated claims and, where appropriate, prosecute those who target Aviva. 

“That’s why we’ve invested in the tools, technology and people necessary to create a robust counter fraud capability, helping to ensure the cost of insurance fraud is not passed onto our customers.”

Ward added that this investment had improved the insurer’s ability to detect fraud, which contributed to a surge in the number of fraudulent claims it detected across 2023. 

This was particularly the case in motor, where Ward said “exaggerated claims for damage have skyrocketed.”