Course description
Fighting Financial Crime in Insurance – Essentials
The UK saw over half a million insurance frauds detected in 2019, with insurance fraud detected every minute. From lying when applying for cover to making a dishonest claim, conning cyclists, bogus bodybuilders, and bus crash scammers are among those caught out.
- A total of 469,000 insurance frauds were detected by insurers. Of these, 98,000 were fraudulent claims, with 371,000 dishonest insurance applications. The number of fraudulent claims detected fell 6% on 2017, while the number of dishonest applications for cover rose by 5%.
- The value of the 98,000 dishonest claims detected, at £1.2 billion, fell marginally by under 1% on the previous year.
- Motor insurance scams remained the most common and most expensive, with 55,000 dishonest claims worth £629 million detected. The number and value of these claims both fell on the previous year - down 8% and 9% respectively.
- Of the 55,000 motor insurance frauds, 80% involved personal injury fraud. These ranged from staged crash for cash frauds to opportunistic scams. The measures in the Civil Liability Act will help ensure fair compensation for genuine claimants.
- There were 20,000 property frauds detected, down slightly on the previous year. However, the value of these frauds, at £115 million, rose by 11%.
This essentials to Financial Crime in the Insurance sector course is designed to be a practical training workshop bring the theory and facts to life. We will discuss best practice and how we can all play a part in the prevention of Financial Crime.
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Suitability - Who should attend?
- Operations Team
- Contact Centre Teams
- Insurance Brokers
- Financial Crime Intelligence Units
Outcome / Qualification etc.
Learning outcomes:
- Gain strong foundations in understanding key risk indicators
- Gain a hands-on approach to detecting financial crime in insurance
- Industry best practice
- Applying the controls and tools to day to day scenarios
- In depth understanding of the regulatory landscape and intelligence units
- Practical takeaways by way of case studies, break out sessions and group discussions with industry experts
Training Course Content
Myth Buster
Myth: Insurance fraudsters aren’t ‘proper’ criminals.
- We will discuss how Insurance fraud is a serious crime and how it is often used to fund the wider activities of criminal gangs which may be linked to serious organised crime such as drug dealing, burglary and terrorism
Myth: Insurance fraud doesn’t harm anyone.
- This course will use practical examples of how insurers incur costs in investigating suspected frauds, which also impacts on their ability to deal with genuine claims quickly. This leads to higher premiums for honest customers and puts people’s lives at risk.
Myth: Insurance fraud is easy to commit.
- We will delve into how fighting insurance fraud is a strategic priority for the industry and why insurers and teams must strengthen their systems and controls against all types of fraud.
Myth: There are no serious consequences or harm in committing insurance fraud.
- Insurance fraud will have long and serious consequences. The fact remains, that insurance fraud is the tip of the iceberg and is connected to serious crime.
Myth: I can save money on my car insurance by putting it in someone else’s name.
- We discuss how ‘fronting’ has risen and the steps to detect and prevent higher risk applicant’s from falsely using third party names.
Myth: The police won’t act on insurance fraud.
- In the UK, a specialist police unit has been established to tackle insurance fraud. The Insurance Fraud Enforcement Department (IFED) is funded by the Association of British Insurers and Lloyd’s of London and is committed to make the country a hostile environment for people who commit insurance fraud. We will work on the step by step guide highlighted by IFED to help fight financial crime in insurance at every step – from operations and contact centre levels to underwriting stage.
Myth: Nobody will find out if I lie on my application form.
- How to monitor application forms which are completed incorrectly.
Myth: Nobody will find out if I make a fraudulent claim.
- Insurers are becoming increasingly effective at sharing intelligence and information to fight fraud at any level. Advanced analytical software helps insurers proactively identify cross-industry patterns and alert the industry to fraudulent networks. The session will discuss how proactively imbed this culture within your business and team.
Case Studies and breakout sessions
The types of fraud and how to fight back. We will bring the following claims to life and use practical tools and controls to mitigate the risk of vulnerability.
- Application Fraud
- Identity theft and the link to modern day slavery
- Loss of earnings
- Bogus Pothole claims
- Personal Injury claims
- Bus / train crashes with passengers on board
- Traveller’s claiming loss of belongings
- Selling fake insurance
- Not injured, until the ambulance arrives.
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