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Keoghs figures reveal continuing rise in fraud

Keoghs, helped insurers avoid paying £100m to fraudulent claimants in its last financial year – a 47 per cent increase on the previous year’s performance.
The number of fraudulent cases handled by the firm increased across the board, but the biggest growth was seen in non-motor claims, particularly suspect property and liability claims.   The savings made in this area by Keoghs’ increased by 70 per cent. 

Organised fraud was also a major growth area, with 25 per cent of overall savings made in cases with links to fraud ring investigations.

In order to cope with the additional demand from the market Keoghs has increased the size of its Counter-Fraud Services (CFS) unit by a quarter over the past year.  It now employs 228 people and the firm is already projecting that this will grow to over 250 people in the next 12 months.

Commenting on the results, Keoghs director of counter-fraud strategy, James Heath, said “These results highlight the fact that the number of fraudulent claims across nearly every line of business continues to rise at an alarming rate.  The investment our clients have made in investigating and pursuing fraud in areas such as commercial property and disease claims – previously assumed to be largely free from fraud – are paying dividends as more bogus claims are being detected and thrown out.  The continuing challenge for the industry – both insurers themselves and their suppliers – is to constantly adapt to the threat of fraud wherever it arises and to continue developing a more coordinated approach harnessing available intelligence to close the net on fraudsters."

“It is also crucial that the focus on fighting fraud is maintained, by working with the judiciary to ensure maximum penalties are secured against those who make fraudulent claims and sending a clear deterrent message to anyone tempted to do so.”

The announcement follows a landmark ruling in the high court in which two fraudulent claimants – Graham and Susan Loveday – were handed custodial sentences for contempt of court after submitting false testimonies to Swansea County Court.  The decision in the case – handled by Keoghs on behalf of Acromas – promises to make it easier for insurers to seek criminal prosecution against those filing bogus or vastly exaggerated claims.