Clyde & Co launches the Global Fraud Survey to better understand insurance claims fraud across the globe
Global claims fraud survey and thought leadership report.
Fraud is not limited to exaggeration on large catastrophic claims. Whiplash is the fastest growing personal injury claim received globally.
- UK – ABI estimates that insurance fraud costs 2.1 billion per annum.
- France – FFSA estimates that fraud accounts for 3.9 billion per annum and that instances of fraud have increased by over 16% year on year
- South Africa – 1/3 of all insurance claims were considered fraudulent by the SAICB and cost the industry 15 billion rand (GBP 700 million)
- USA – CAIF report that Insurance fraud cost the industry over USD 80 billion each year.
- Spain – Insurers are reporting that whiplash claims are being pursued through the civil court rather than the usual criminal route. This utilizes private medical experts rather than court appointed advisors and has resulted in significant increases in both damages and fraud exposure.
Despite these statistics, specialist volume fraud teams are rarely utilized outside the UK and whilst Specialists Investigate Units are an increasing resource, the industry struggles under the weight of the fraud problem.
Domestically, data protection and regulatory rules often render investigation diffierences and when the differences in legislation are expanded globally the silos in which the industry sit multiply.
The Clyde & Co Global Fraud Thought Leadership Report is designed to gain a better understanding of claims fraud across the globe. It investigates the level of knowledge within the industry and explores government and legislative support for counter fraud strategy.
By better understanding fraud we can better tailor fraud strategy. As an industry we can move from talking about fraud to tailored output, whether that be education, strategy or legislation. We can work together to ensure that fraudsters do not exploit the global insurance market to their benefit.
We would welcome your assistance in this project and would ask that you click here to complete the survey.
This survey is designed for all Insurance claims handlers, not just those with fraud knowledge and expertise. By asking the opinions of a wide range of professionals we will get a true picture of the counter fraud health of our industry globally.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
