Insurance Fraud Investigations
Expert investigation of insurance claims arising from commercial, professional and personal policies is a specialty of our company.
Investigations are tailored to individual client requirements in all cases.
Insurance Fraud Investigations services offered by our claims investigation division include:
- Motor Insurance
- Commercial Insurances
- Professional Indemnity
- Public Liability
- Contrived Public Liability and Occupiers
- Travel Claims
- Aviation and Marine
- Fraud Investigation
The methodology of claims management in the insurance industry has not changed significantly over many years. It has honorably relied upon an assumed basic level of good faith on the part of the claimant, consistent with the “utmost good faith” of the Insurance contract.
The scale of insurance fraud, however, continues to rise – no doubt reflecting a decline in social values.
Among the consequences of undetected fraud are:-
- Increased costs to the Insurer.
- Increased premiums for the policyholder
- Loss of competitive “edge” for the insurer.
Without further insurance fraud investigations across the UK it is becoming more apparent that insurance fraud can succeed undetected, which is a greater incentive to further attempts at insurance fraud.
The Association of British Insurers (ABI) estimates undetected general insurance claims fraud totals £2.1bn a year and adds around £50 to the annual cost of household insurances. Our insurance fraud investigation team have the knowledge, experience and dedication to prevent this from becoming a larger issue.
Insurance fraud can be classified as either hard fraud or soft fraud.
Hard fraud occurs when someone deliberately plans or invents a loss, such as a collision, auto theft, or fire that is covered by their insurance policy in order to receive payment for damages. Criminal rings are sometimes involved in hard fraud schemes that can steal millions of dollars.
Soft fraud, which is far more common than hard fraud, is sometimes also referred to as opportunistic fraud. This type of fraud consists of policyholders exaggerating otherwise-legitimate claims. For example, when involved in an automotive collision an insured person might claim more damage than actually occurred. Soft fraud can also occur when, while obtaining a new health insurance policy, an individual misreports previous or existing conditions in order to obtain a lower premium on his or her insurance policy.