Aviva Reports Increase in Fraudulent Motor Insurance Claims for 2023

Last year, Aviva reported a 39 percent increase in fraudulent motor insurance claims amounting to millions of pounds.

Over 11,000 suspect claims worth £116 million were identified in 2023, averaging to 30 false claims per day valued at £318,000 each.

Fraudulent claims for minor injuries from road accidents and vehicle damage saw a significant surge, with motor injury fraud being the most common target for fraudsters, accounting for 35 percent of detected false claims by Aviva.

The insurer dealt with a rising number of fraudulent injury claims, increasing by 19 percent from the previous year and totaling over £23 million.

Aviva also revealed that £6 million worth of bogus claims were based on fabricated personal damages and injuries.

On top of that, Aviva faced more than 400 fraudulent or exaggerated bodily injury claims from third parties not covered by the insurer, such as exaggerated injuries from low-speed accidents like car park shunts.

Aviva remains committed to defending against fraudulent claims and prosecuting offenders. Pete Ward, head of claims counter fraud at Aviva, emphasized the company’s dedication to promptly settling valid claims while combatting fraud.

Motor Damage and ‘Ghost Brokers’

According to Aviva, fraudulent injury and vehicle damage claims were predominant in fraudulent activities. The insurer noted a 123 percent increase in fraudulent motor damage claims last year.

After the implementation of the Whiplash Reform Programme in 2021, organised whiplash fraudsters shifted focus to motor damage claims, as individuals making injury claims below £5,000 now need to provide medical evidence and cover legal fees themselves.

To protect customers from the costs of fraud, Aviva has invested in robust counter-fraud tools to enhance fraud detection across all business lines, contributing to the significant rise in identified fraudulent claims, especially in motor insurance.

Aviva also cautioned about the dangers of “ghost broking” in motor insurance, where fraudsters pretend to be legitimate brokers to sell fake policies by providing false information to secure lower premiums.

Online scams, particularly ghost broking, are becoming more sophisticated, urging consumers to stay vigilant and differentiate between genuine offers and fraudulent schemes.

Mark Allen, head of fraud and financial crime at ABI, highlighted scammers targeting vulnerable individuals facing financial pressures.

Furthermore, Aviva warned about accident management companies misleading customers into thinking they are contacting their insurer, resulting in inflated costs that customers may be coerced into paying.