Strengthening the collaboration between its underwriting and fraud teams through the use of data and a new system for identifying quote manipulation are two of the innovations that Allianz has developed to fight fraud in commercial lines.
To tackle fraudsters’ new and sophisticated means of deceiving insurers, ranging from crash-for-cash cases to ghost broking, Allianz has put various controls in place to protect its commercial book.
These control include strengthening the collaboration between its underwriting and fraud teams. Through working in close partnership, the teams can compare policy information against a database containing suspect and fraudulent data.
Allianz has also developed a quote manipulation system, which takes into account various factors that can indicate suspicious or fraudulent activity.
Any findings are referred on to specialist teams and discussed with brokers where necessary. The benefits of this work are already being realised, with a number of policies being investigated and several voided as a result, according to Allianz.
Its focus on fraud has led to £62 million of claims fraud savings in 2017. In the same year, 22 claims were referred to the City of London Police’s Insurance Fraud Enforcement Department.
Donna Wood, commercial motor underwriting manager at Allianz, said: “Our fraud detection has increased dramatically, particularly in the commercial motor and motor trade areas. Through our teams working much more collaboratively, and by using each other’s expertise in underwriting and fraud detection, we’ve already identified and dealt with a number of cases.”