An Insurance Fraud Register (IFR) – a first industry-owned, cross-sector register of known insurance fraudsters – has been hailed by an insurance trade body as a ‘big ticket initiative’.
Aidan Kerr of the ABI told a conference that the register will hold details of first party fraudsters, third party fraudsters – such as passengers who have made a false claim following a road accident – suppliers and professional enablers who have committed fraud – whether it is at the application stage, renewal, the claims stage or when changes are made to the policy.
“The IFR will benefit the industry and its customers alike. It will improve consumer confidence, providing a visible log of our on-going activity, as well as a deterrent for fraudsters.
“The IFR will deliver the functionality that the industry needs in a cost-effective way – since we are reusing the assets that the industry has already built. In particular, we’re using the IFB – which is firmly established as the industry centre of excellence.”
He described also a project to secure access to driver licence details from the DVLA. “This is a major piece of work involving the ABI, DVLA, Motor Insurers Bureau and central Government: an example of how different organisations can – and need to – work together to drive results. The new system will work with motorists providing their Driving License Number when applying for insurance. An automatic check will then be made of the DVLA database, bringing back accurate information on licenses – such as conviction dates; points; disqualifications; type of licence held; length of time licence held and age). The system will then direct enquiries through an industry ‘hub’ to be run by the MIB [Motor Insurers Bureau].”
He stressed ‘systematic ways of tackling and preventing fraud’ by the insurance sector, such as the Insurance Fraud Bureau, launched in 2006. Kerr said its impact has been huge, with 829 arrests, securing more than 215 years in prison for organised fraudsters; and tens of millions of pounds of savings for insurers and ultimately customers. It’s now able to manage nearly half of the industry’s estimated value of organised motor fraud, Kerr said; who claimed that insurers were taking a ‘zero tolerance’ approach.
And the Insurance Fraud Enforcement Department (or IFED) became operational in January 2012. Kerr said: “It is a bespoke counter-fraud insurance unit housed within the City of London Police – which is the lead police force for economic crime within the UK. It is funded by the industry – to the tune of nearly £3m a year – and is visible proof that insurers are putting their money where their mouth is when it comes to fighting fraud.”
As of the end of September 2013, IFED had made more than 350 arrests, secured 45 convictions and issued over 100 cautions. It has more than £23m of fraud under investigation. Last month, IFED coordinated a well-orchestrated ‘day of action’ involving 168 officers during which 27 ‘ghost brokers’ were arrested in dawn raids across the country after the execution of warrants in Greater London, West Midlands, Manchester, Thames Valley and Leicestershire.
Kerr also hailed what he called a toughening up of judicial approaches towards insurance fraud, ‘and Government taking a keen interest in what it can do to help tackle fraud in whiplash’, as each year around half a million people claim for whiplash.
Visit the ABI website for the speech in full.
