Sedgwick saves nearly £50m for clients as fraud strategy continues to evolve

Loss adjuster Sedgwick saved its clients nearly £50m in 2023 as it dealt with more fraudulent claims throughout the year.

The firm said economic headwinds, such as double-digit inflation, contributed to an 8% increase in claims identified as suspect across its UK book of business.

The average cost of investigated claims also increased in 2023 — this was driven by inflation and exaggerated escape of water claims made during the UK’s winter freeze in 2022.

However, Sedgwick said its claims fraud strategy was able to save clients £49.4m last year.

Ian Carman, director of Sedgwick’s UK fraud and investigation services operation, added that over the past three years, the value of savings delivered to UK clients grew by 73%.

“I’m pleased that our ability to deliver these results, which relies on a blend of sophisticated counter-fraud technology solutions and colleague expertise, has been achieved without any detrimental impact to the customer experience,” he continued.

“We continue to adapt our strategies to identify and tackle new and emerging fraud risks to deliver better results for our clients and their customers.”

Cases

Amid a rise in fraud, Sedgwick’s experts also observed a recent increase in organised fraud rings, which have continued to adapt how they target financial services.

For example, many are taking advantage of the popularity of transactional, embedded insurance benefits, such as travel, medical and purchase protection offerings, by operating across multiple geographies.

Steve Crystal, head of Sedgwick’s international fraud and investigation services, noted that regulators were taking greater interest in fraud and abuse oversight.

“We’re seeing a growing appetite for mitigating the threat of fraud internationally,” Crystal said.

“At Sedgwick, our emphasis remains on strengthening our capabilities with cross-border activity across all product lines.

“Whether insurers have a global presence or operate solely in local markets, the common denominator is that claims fraud is increasingly viewed as bad news.”