eInsurance continues the fight against fraud

The Daily Mail has today reported that honest motorists face soaring premiums as a ‘fraud epidemic’ sweeping the country causes insurers to secretly blacklist certain postcodes. It continues to say motorists have seen a record 40 per cent hike in premiums over the past year, with the average annual comprehensive policy forecast to break the £1,000 barrier within 12 months, and added that Insurers claim a major reason for this increase is fraudulent claims that are estimated to cost £2.7billion a year, adding £44 to the annual premium of honest motorists.

This article highlights the exceptional importance of fighting fraud, reflecting the eInsurance Group policy of keeping premiums low for our honest customers by fighting fraud. Insurance fraud is a costly business, and the knock-on effects to ‘honest’ customers are significant. CEO of eInsurance Group, Alan Sanderson, said; ‘We like to take care of our customers, and we are deeply committed to protecting our honest customers by eliminating fraud. Our Fraud Task Force is in place to catch and halt fraudulent claims and applications in their tracks, ensuring our honest customers don’t have to cover the costs of those that aren’t.’

The article continued: ‘Common frauds include staged accidents, often perpetrated by criminal gangs who deliberately cause innocent motorists to crash into them. Last week, three more people were jailed for a £5.3  million ‘cash-for-crash’ scam at Luton Crown Court. Other examples include bogus injury claims — whiplash being the most common — and fronting, where parents cut costs by claiming they are the main driver on an insurance policy for their child’s car. 

‘Each year, Keoghs — a law firm specialising in investigating suspicious claims on behalf of insurance companies — publishes the worst areas for fraud. But it also provides insurers with secret information on the worst postcodes.

‘The top ten areas for suspicious claims are parts of Birmingham, Liverpool, Bradford, East London, Manchester, North London, Bolton, Blackburn, Southall and Oldham. These towns and cities account for more than four in ten suspicious claims. James Heath, head of counter fraud strategy at Keoghs, said: ‘We are now seeing what can reasonably be described as a fraud epidemic across the UK. It is clear from these results that fraud is no longer restricted to the country’s most heavily built-up areas.’

‘Ian Crowder, from the AA, said: ‘It’s a bit of a postcode lottery. Certainly some areas are in danger of being blacklisted by certain insurance companies because they are seen to pose such a high risk.’ 


The full article can be read here: http://tinyurl.com/67tgksg

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