An insurer’s fraud prevention team uncovered nearly £260,000-worth of bogus claims every day typically last year – with fake stories involving “slips and trips” being the most common. In total, Zurich UK detected £94.79 million-worth of fraudulent claims taking place from January to December 2024. Bogus injury claims accounted for the bulk of fraudulent cases detected by Zurich Uk in 2024. Nearly two-thirds (65%) of fraudulent claims were for casualty incidents, totalling 1,996 claims worth £61.14 million. This could be for minor slips and trips, or more serious injuries. Claimants may not always be honest about how and where they sustained them, the insurer said. Zurich also said it had seen a rise in fraudulent property insurance claims, accounting for £19.35 million bogus claims detected last year. Fraudulent motor claims also increased last year, totalling £14.3 million. This category includes staged “crash for cash” scams, as well as claims for accidents that may never have happened. Zurich said it is continuing to adapt and invest in methods to combat the latest fraud trends, and this autumn it will roll out technology to help it identify “high risk” cases by providing data and insights from multiple sources. The business also partners with a data provider which screens personal injury claims against the internet for signs of suspect activity. Alongside this, various investigative tools are used to help investigate and validate claims. The insurer has seen several claims involving “evidence” that has been manipulated. Bogus lost baggage claims also contributed to last year’s total. In one claim detected by Zurich, a customer submitted photos of items allegedly in the boot of a car during an accident, but it emerged the photos had been sourced from the internet. In another case, a student submitted a claim for frozen food following a power cut at a halls of residence, but Zurich said the receipt provided had been digitally amended. The insurer noted that the number of reward points on the receipt had not been increased. Zurich also saw a case where a customer claimed for lost baggage. The insurer said the date on the receipt provided for the claim had been manipulated but the blunder was compounded by it being the same receipt used for a previous lost baggage claim submitted. Fake stories involving “slips and trips” were the most common bogus claims dealt with. Scott Clayton, head of claims fraud at Zurich, said: “It’s crucial we remain one step ahead of fraudsters, every false claim that slips through the net impacts our honest customers. It cuts across every type of insurance, but casualty seems to be one of most common. Techniques are becoming more sophisticated but so is the technology we use for detection. Much of this fraud is carried out by highly organised criminal gangs so it’s not all down to opportunistic customers and claimants. It’s really important for every insurer to keep pace by using the latest detection technology, alongside human intervention to keep pace with this fast-growing challenge for the industry.”

UK insurer uncovering £260,000-worth of bogus claims every day

Zurich UK uncovered nearly £260,000-worth of fraudulent claims daily in 2024, totaling £94.79 million. The majority of these claims were for casualty incidents, with 'slips and trips' being the most common. The insurer also detected a rise in fraudulent property and motor claims. Zurich is investing in technology to identify high-risk cases and combat the latest fraud trends.