Vehicle insurance fraud is at an all-time high and not just in the UK. It’s a global issue across the board. It seems the lockdowns have provided time for criminals to be creative with their fraudulent vehicle insurance claims. While legitimate claims certainly decreased during the pandemic, the number of fraudulent cases rose by 50%.
Vehicle insurance fraud ranges from misleading information to staging accidents, injuries and theft. In 2020, it was reported that nearly 300 fraudulent claims were submitted every day costing the vehicle insurance industry £1.2 billion. In response, 30% of insurers reported an increased rate of their fraud screening process.
See the full picture to tackle the problem:
One way insurers combat fraud is through a clear and concise investigation process. However, getting this task to be efficient and worth the effort is a completely different story. Many insurers still use archaic methods of searching data throughout various databases. This is time consuming and incredibly costly making their attempts to stop fraud completely counterproductive.
Sometimes a well devised change in the process of checks and balances can prove very effective. Cazoo Data Services have recently produced a handy checklist to help support investigating insurance fraud in a more lucrative fashion. In this ebook, ‘Checklist for Reducing Fraudulent Vehicle Claims’, insurers can begin to see the full picture and understand the different ways of spotting anomalies. Insurers will be able to lower fraud cases through prevention and proper data systems. More importantly, factual data and insights provide a clear understanding of the market to help spot fraud but also price those legitimate claims fairly.
Cazoo Data Services products are designed to help insurers make the most of their claims handling. Cazoo Data services unrivalled database combines historic vehicle data with information from the DVLA, DVSA and MOT history to give insurance companies all the available information on any one vehicle.
Cazoo Data Services tools uncover VIN-level detail and reveal everything from vehicle mileage and valuation through to modifications and MOT advisories. This means insurers can see the full picture and truly understand the risk factor of the vehicle and decide whether to accept this risk and on what terms. Our data helps insurers validate information and underwrite high-quality new business.
Cazoo Data Services brings innovative AI and data science-driven modelling to an outdated sector that relied heavily on manual editorial processes and opinion in an attempt to establish current and future vehicle values. Cazoo Data Services products offer clear data and insights that insurers love. The most popular choices for insurers are our APIs and Claims Companion. These intelligent tools offer reporting and data that is capable of integration to show:
All this combined with Cazoo Data Services market values mean insurers are more efficient and can offer fairer cover pricing and claim settlements while being able to identify the fraudsters.
To learn more about how we can support your insurance business contact the team today.
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