| UK life insurance companies are becoming so | | | | identify potential frauds, and there are much |
| concerned at the amount of false claims that | | | | better procedures at claim level to allow |
| they have issued a reminder to would-be | | | | insurers to probe further. Systems introduced |
| fraudsters of the existence of the Insurance | | | | since 2006 allow analysis of insurance |
| Fraud Bureau (IFB), first launched in 2006. | | | | policies and claims records from all the |
| | | | insurers participating in the scheme, and can |
| The life insurance industry is worried that | | | | highlight any suspicious activity. Basically, |
| the recent high-profile case of 'canoeist' | | | | the bureau can use insurance companies' |
| John Darwin may have put ideas in some | | | | records to compare life insurance claims and |
| potential fraudsters' minds, so is keen to | | | | assess whether they are likely to be genuine, |
| nip any such thoughts in the bud before more | | | | fraudulent, or perhaps the work of an |
| people go 'missing', presumed dead. | | | | organised criminal ring. |
| | | | |
| Although originally launched to counter the | | | | The IFB is going to extensive lengths to |
| actions of criminal gangs, the IFB soon added | | | | catch fraudsters and methods to determine |
| investigation of fake insurance claims to its | | | | whether claimants are telling the truth |
| remit. Technical and corporate affairs | | | | include the use of voice analysis software, |
| executive for the British Insurance Brokers | | | | which can allegedly pick up subtle changes in |
| Association (BIBA), Graeme Trudgill insists | | | | a caller's telephone voice. The computer |
| that fake claims damage everyone as they make | | | | program will identify any nervousness and |
| insurance more expensive, for which we all | | | | alert investigators to a potential fraud. |
| pay in the form of increased premiums. | | | | But, that is about all that the IFB will |
| | | | reveal about its methods. All other detection |
| Systems have become much more integrated and | | | | methods are being firmly kept under wraps in |
| with the life industry backing the IFB and | | | | case they are compromised by would-be |
| providing much access to information, | | | | fraudsters. |
| Trudgill says that it is easier to spot | | | | |
| potential fraudsters. He concedes that life | | | | In the wake of the global credit crunch and |
| insurance fraud is becoming a problem, but | | | | the rapid deterioration in life assurance |
| also claims that because the IFB are better | | | | valuations, UK insurers will be doing all |
| able to investigate that anyone thinking of | | | | they can to weather the storm, and that |
| perpetrating a fraud should think twice. | | | | includes mitigating any potential fraud |
| | | | losses - guaranteeing that any claims will be |
| Extensive modelling has been developed to | | | | vehemently policed over the coming year. |