Cost-of-living pressure driving up fraudulent claims, Zurich says


Zurich Insurance Group (Zurich) has reported a 31% increase in fraudulent property insurance claims in 2022 and a 7% rise in fake casualty claims.

Zurich UK said it foiled nearly £200,000 worth of fraud every day last year as cost-of-living challenges spurred a surge in bogus claims.

The insurer detected a 31% increase in fraudulent property claims in 2022 and a 7% rise in fake casualty claims.

This comes as added pressure on household finances leads more to turn to fraud, Zurich said, with the Insurance Fraud Bureau seeing a 17% increase in names added to its register of fraudsters in the 12 months to July last year.

Overall, Zurich prevented some 3,460 fraudulent claims last year, worth roughly £20,000 per claim. The total value of fraud prevented was £71.5m, averaging £195,890 a day.

Despite an increase in organised motor fraud and bent metal claims, a significant reduction in spurious whiplash claims led to a 20% drop in motor fraud, Zurich’s market data reveals.

Scott Clayton, head of claims fraud at Zurich, said, “Households continue to face financial strains due to the cost-of-living crisis, and unfortunately this has led to an uptick in insurance fraud.

“Fraudsters are continually evolving in their methods, but so are we, and we now have more tools in our arsenal to detect fraud than ever before. Fraudulent claimants should be aware of the real-world consequences of their actions, which can include criminal prosecution and prison sentences for those caught.”

Tom Hill, detective chief inspector, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), added, “We understand that the rising cost of living has presented challenges for many people across the country – but turning to crime is never the answer.

“Submitting a bogus insurance claim may seem like a victimless crime, but it in fact drives up the cost of premiums for everyone. As well as this, it could land you with a criminal record. Exaggerating or fabricating a claim may seem like a quick way to make money, but a conviction will have a lasting impact on your life.”

Last year, Zurich launched Zurich eXchange, a next-generation global API marketplace to enable more efficient collaboration.

Keep up with all the latest FinTech news here.

Copyright © 2023 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.