Insurance Fraud Bureau to expand its remit beyond motor insurance fraud new 5-year strategy
Organised fraudsters are cashing in on ‘Crash for Cash’, liability fraud and fake industrial disease/injury claims lining their pockets at the expense of innocent policyholders.
Now, some may say insurers rip us off, so if you can get away with adding a little to a claim and can get away with it so what. The problem is one it is insurance fraud to exaggerate a claim and it all adds up and insurance companies then kindly pass it on to us in higher premiums.
Any form of insurance fraud should be detested but now has become a very lucrative business for criminals. But there are organisations that are fighting back such as The Insurance Fraud Bureau (IFB).
Since its formation in 2006 to tackle „Crash for Cash‟ fraud, IFB investigations have led to over 1,000 arrests and 260 years prison time for the UK‟s most prolific motor insurance fraudsters. The industry now considers the IFB best-placed to manage organised fraud holistically.
Today the IFB has announced it will extend its fight against organised fraud into other product lines, following the launch of its new strategy (2015 – 2019).
Organised liability fraud, which includes „slip & trip‟ scams and fraudulent industrial disease/injury claims, set to be top of the IFB‟s hit-list as the Bureau prepares to expand its historical focus on motor from 2015.
The new IFB strategy, which has been developed following a 9-month review and consultation with stakeholders, will also see the Bureau defining best practice for intelligence sharing on behalf of the industry, with a long-term view of establishing the IFB as a central hub for all
In focus: IFB strategy consultation –
88% say industry management of ‘Crash for Cash’ has improved significantly in the last 5 years
90% say IFB services should be extended to detect/disrupt organised fraud in other product lines
88% say the IFB should expand the breadth of stakeholders it engages with to fight organised fraud
76% say the IFB should be the central industry hub for all fraud data and intelligence
Ben Fletcher, IFB Director, said: “Organised criminal gangs (OCGs) targeting our industry are not product loyal. Until now, there has been no visibility or management of organised fraud across other product lines, beyond motor.
“The industry has now spoken. And whilst „Crash for Cash‟ will remain a core focus of the Bureau moving forward, the IFB has been entrusted with leading the fight against organised fraud across all general insurance lines.”
Fletcher added: “With a single view of all insurance fraud intelligence, the IFB will be best-placed to compile industry-wide threat assessments and engage law enforcement agencies and regulators with much stronger propositions.”
Undetected general insurance fraud is estimated to cost the insurance industry £2.1 billion every year, with honest policyholders feeling the effect through increased premiums. By expanding its focus beyond motor, the IFB will provide more support for the industry and help them protect their customers from the cost of fraud.
John O‟Roarke, IFB Chairman, said: “The new IFB strategy marks a clear statement of intent from the insurance industry to continue tightening the grip on all forms of fraud.
“Disrupting organised fraud in new product lines and coordinating intelligence sharing is a timely and natural evolution of the IFB, which has established itself as a key component of the insurance industry‟s counter-fraud strategy since 2006.”
Work in 2015 will initially focus on identifying where the IFB should focus first, taking into account the relative risks and likely return on investment from the different product lines. Collaboration with the industry in 2015 will also define options to standardise and centralise intelligence sharing.