Press release -
Allianz UK reports increase in fraudulent hearing loss claims and cloned businesses
Allianz UK fraud teams are seeing a marked increase in fraudulent noise induced hearing loss and fake or cloned businesses claims coming through in the first half of 2024.
The claims teams at Allianz UK have achieved a saving of £37.7m in detecting fraudulent claims within the first half of 2024 with a significant portion of fraud savings coming from casualty fraud - with major loss fraud contributing heavily.
The integration of machine learning tools, such as Incognito, has significantly contributed to the overall increase in fraud detection, enabling more sophisticated analysis and identification of fraudulent activities, which has led to a 3.5% increase in fraud detection, with motor claims seeing a continued increase in detection.
Allianz’s casualty fraud teams are continuing to see fraudulent claims related to Noise Induced Hearing Loss and recently had two cases dismissed in court by the judge for fundamental dishonesty. In both cases the judges ruled that the defendants were entitled to enforce their costs from the claimants. Allianz continues to see an uptick in casualty fraud led by professional enablers.
With the increase in more adverse weather, particularly with autumn and winter storms, the property team are seeing an increased trend in pre-existing storm damage claims, where claims are being submitted for damage that exceeds likely storm damage with the hopes of claiming for the additional pre-existing repairs.
Despite a rise in underwriting and application fraud across the industry, the support and training that we give to our underwriting colleagues, has resulted in a 15% increase in fraud savings, highlighting the positive effect that this awareness has had on our ability to detect more cases earlier. The application fraud team continued to observe increases in fake or cloned businesses trying to obtain motor fleet insurance using falsified Confirmed Claims Experience documentation.
James Burge, head of counter fraud, Allianz Commercial commented: “Our half-year fraud results reflect our relentless efforts to protect our customers and maintain the integrity of our services. The fraud teams have shown continued determination in rooting out those who falsify all types of policy and claims. Our investments in technology, such as machine learning and AI, training, and collaboration across the industry and broker network are paying off, and we remain committed to staying ahead of fraudsters.”
“Our strong collaboration with brokers has further heightened their fraud awareness and detection and at Allianz we continue to champion commercial fraud management. By sharing our insights and strategies with our industry partners and supporting the Commercial Fraud Intelligence Group (CFIG) we are ensuring that all customers can benefit by building a more vigilant and stronger industry.”
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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
The Allianz Group is one of the world's leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 741 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.
* Including non-consolidated entities with Allianz customers.
**As of June 30, 2024.
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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’s core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions including related integration issues and reorganization measures, and (xii) 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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