Press release -
Allianz 2023 claims fraud savings hit £77.4m
Reporting on its 2023 fraud results, Allianz Commercial detected £77.4m worth of claims fraud in 2023 - up from £70.7m in 2022 - with application fraud savings of £1.95m. The current cost-of-living crisis is having a continued impact on businesses with the financial struggle leading to an increased insurance fraud threat.
Claims Fraud detection overall has increased by 10% from the prior year with the use of the Allianz machine learning tool, Incognito, boosting detection rates alongside the dedicated work of the claims validation teams.
Key trends include a marked increase in the attempted use of false Confirmed Claims Experience (CCE’s), the commercial equivalent of a no-claims bonus, which shows a potential link to ID theft of genuine companies. While 2022 saw a reduction of ‘crash for cash’ motor accidents, this trend was reversed in 2023 with a 25% increase in referrals.
Other trends in motor fraud include a continuous issue with mopeds and couriers inducing and fabricating incidents. Allianz has also identified similar accidents with pedal cycles and pedestrians which could be linked to the changes in the Highway Code.
In the Casualty space, the rise in professional enabler led fraud continues and within the property arena Allianz recorded a 41% increase in investigations relating to deliberate non-disclosure compared to 2022. This included policyholders falsifying previous claims history and not disclosing criminal convictions or directorships of liquidated companies.
James Burge, head of counter fraud, Allianz Commercial commented: “We have seen an uptick across the board on all aspects of insurance fraud in 2023. Our success in detection and preventive measures lies in the superb collaboration across our teams, with effective strategies and support from our suppliers and leadership teams. We remain focussed on fraud detection to protect our honest customers in 2024.”
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About Allianz Holdings plc
Allianz Holdings plc is the non-regulated holding company which owns the principal insurance operations of Allianz SE in Great Britain including Allianz Insurance
About Allianz
**As of March 31, 2023
***As reported – not adjusted to reflect the application of IFRS 9 and IFRS 17.
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This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.
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