28 BROKERS’ MONTHLY
Robertson confirm fraud trends
Following the ABI release of statistics highlighting the increased value of
Renew acquired by
detected fraud through 2008 specialist fraud investigation & surveillance
Hastings Direct
supplier Robertson and Co confirms the trends it is witnessing in the
The Hastings Direct acquisition of
escalation of insurance fraud.
Renew Insurance Services signals a
number of development opportunities,
● In the last nine months insurance-related fraud investigation
according to Renew managing director
instructions increased by just over 100%. This increase has been
Adrian Parry, who joined in January 2009.
sustained and remained constant, and applies to claims from existing
“Renew will continue to accelerate its
clients and does not take new business into consideration
natural growth via the web and affiliate
schemes. The marriage with Hastings
● This increase is now affecting employers and public liability personal
Direct offers a huge opportunity to
injury claims, which have a much longer lead-in time to the point
expand within our Newmarket call centre.
where fraud is first suspected or identified
We are looking forward to building on our
relations with insurers given the combined
● There has been an increase in thefts of, and/or arson to, higher value
scale of the businesses.” vehicles. This suggests that dishonest claimants need more money to
Parry will be responsible for insurer pay off creditors, mortgages, credit card bills etc. When vehicles are
relations across the group, supported by
leased, there is often a history of failing to keep up payments
Russell Boneham of Renew and Andy Cook
immediately prior to the loss
at Hastings. All the existing brands will
remain independent and will be priced
● In travel and household claims, there has been an increase in cases
separately, and Renew will also become
where additional items have been fraudulently added to the list of
the home for all failed quotes across all
property lost or stolen
products.
Commenting on the recent decision
● Commercial arson cases have likewise increased
of Hastings Direct to expand its multi-
channel distribution into high street
branches, Parry confirms, “There is a
● Accident & health (mortgage protection) claims have increased.
rationale for that. There’s a lot happening
Dishonest claimants are increasingly making long-term sickness claims
in distribution concerning the pricing and
with backache, stress etc. There is a strong correlation between these
the marketing costs and these are among
claims and subsequent redundancies at the claimant’s place of work.
the things we are looking at.”
N&G report fraud rise
Endsleigh 6 month
NCD offer
Navigators and General report customers are honest, increasing
the cost of yacht and motorboat financial pressures brought about by
Endsleigh Insurance Services
claims rising over threefold in the first the credit crunch is causing a rise in
offers students taking out car
three months of 2009, with fraudulent fraudulent claims. “We have a very
insurance a No Claims Bonus
claims on the increase. Typical fraud experienced team of claims
accelerator scheme. Students can
includes theft claims; exaggeration of professionals who work with our fraud
earn a fully transferable two year no
items stolen or gross exaggeration of investigation team to ensure that claims discount after the policy has
values; and false claims for total loss – these claims are easily separated from
run for 18 months. Endsleigh
such claims often following a recent those made by honest claimants and
spokesperson Rhiannon Harris, says,
increase in value. to ensure this activity does not add
“This is a great opportunity for
Head of N&G James Roberts says any unnecessary cost to our
students of any age to quickly
that while the vast majority of customers’ premiums.”
achieve a no claims bonus,
Pleasure craft fraud -
increasing their chances of getting
recent examples provided by N&G
cheaper car insurance. We believe
that our six month bonus scheme is
● A customer claimed for £20k repairs. When N&G contacted the
repairer they were accidentally sent some pre-claim invoices which
the most competitive offer on the
revealed this was a general refurbishment. There had been no accidental market and it has been specifically
damage whatsoever designed to help students early on,
when it is often most difficult for
● A customer bought a policy and then claimed for damage shortly
afterwards. Investigation revealed the damage occurred before the policy
them to secure cheaper car
was taken out. Both the claim and policy were immediately cancelled insurance.” The scheme allows
students who complete their
● A customer reported his boat stolen but shortly after the claim was
paid, the owner was found overseas with his “missing” boat
education during the policy to carry
the benefits on.
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