- Four in five brokers see increased instances of insurance fraud, yet only a third feel confident to deal with the rise
- Over half of brokers believe internal investment and cross-industry collaboration will help identify the signs of fraud
The insurance industry is facing a significant issue with fraud, with growing concern among brokers on increasing levels of insurance fraud, according to the results of the latest Broker Pulse from RSA Insurance.
The study of 200 brokers across the UK shows a rise in fraudulent claims over the past year with 83% of brokers having reported seeing an increase in instances of fraud. While the vast majority (86%) are confident that they can detect the signs of fraud, more than three-quarters (76%) say they needed to increase resources to deal with fraudulent claims.
With the ongoing cost-of-living crisis likely to exacerbate this issue, only 32% of brokers responded that they are ‘very confident’ that their business is equipped to deal with this rise.
When asked about the best options to help the industry counteract this rise, brokers pointed to solutions involving internal investment and greater cross-industry collaboration to tackle the ever-evolving crime of insurance fraud. Over half of brokers (54%) plan for further investment in training for employees and fraud detection staff, 52% are calling for the creation of a cross-industry task force, while a further half (50%) recognise the benefits from greater sharing of relevant data across the industry. This would allow organisations to enhance and modify their current processes to better identify fraudulent claims.
What could better help the insurance industry detect signs of insurance fraud? |
|
Investment into training and fraud detection staff |
54% |
Creation of a cross-industry task force to tackle fraud |
52% |
Greater sharing of data between insurers |
50% |
Investment into intelligence-led databases and resources |
50% |
Adele Sumner, Head of Counter Fraud Strategy and Financial Crime at RSA said: “The findings of our latest Broker Pulse indicates that brokers are seeing a rise in fraudulent claims, which is concerning, but unfortunately not a surprise. In times of economic hardship, like the one we are currently going through, fraudulent activity does tend to increase and in certain instances individuals and businesses can feel they need to do things that were previously unthinkable.
“What is encouraging is that brokers have the confidence to detect the signs of fraudulent activity. We’re keen to continue collaborating with brokers and share strategic intelligence on the trends of fraudsters. By keeping a sharp focus on the issue and taking appropriate action, we can more effectively safeguard the interests of customers.”
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Notes to editors
About the research
The research was conducted by Censuswide among 200 UK brokers on behalf of RSA Insurance Group on 21 December 2022. Censuswide abides by and employ members of the Market Research Society which is based on the ESOMAR principles.
About RSA Insurance
RSA Insurance is a multinational insurance group. We are one of the world’s oldest general insurers, providing peace of mind to individuals and protecting small businesses and large organisations from uncertainty. We use our capabilities to anticipate and improve outcomes for customers via our direct channel, our broker relationships or partner organisations. We have established businesses in the UK, Ireland and continental Europe.
In 2021, the former RSA Group Plc came under new ownership and is now a wholly-owned subsidiary of Intact Financial Corporation.
For more information about RSA Insurance, please visit
https://www.rsainsurance.co.uk/
Oliver Hibberd
Senior PR Manager
RSA Insurance