Steve Jackson talks about the dangers of inflating insurance claims

28th November

This week nine people across England and Wales were arrested by City of London police investigating £450,000 worth of allegedly fraudulent household insurance claims.
One of the arrests was a Covéa Insurance customer who had asked a repair supplier to bump-up the cost of their claim in order to cover their £250 excess.

The crime was detected by one of Covéa Insurance’s vigilant claims handlers who referred the case to the company’s financial crime unit, who in turn worked with the Insurance Fraud Enforcement Department (IFED) of the City of London Police, to investigate and secure an arrest that ended with a Caution.

Speaking about the incident, Steve Jackson head of financial crime at Covéa Insurance commented:

“Many people don’t recognise that inflating or exaggerating a claim is fraud, or indeed a crime; it is. This kind of fraud is insidious in the insurance market, is as damaging as the organised criminal gangs who target insurance companies, and is adding millions of pounds in costs which are inevitably passed on to honest customers.”

“We are huge supporters of the work of IFED and applaud their efforts in bringing these people to justice; however it was only through the diligence of our claims handler, who spotted the issue and the subsequent investigation by our financial crime team that we were able to bring the matter to the attention of IFED. This case demonstrates the huge benefits we derive from having our claims expertise in-house so that our claims and financial crime teams can work hand-in-hand to detect and prevent fraud in all its forms.”

 

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About Covéa Insurance

Covea Insurance plc is the UK underwriting business of leading French mutual insurance group Covéa, who are number 1 for property and liability insurance in France, generating over 16.3 billion Euros in premiums in 2017.  

Covéa Insurance looks after the insurance needs of over 1.5 million policyholders; delivering financial reassurance through its Standard & Poor’s A+ stable rating, as a guaranteed subsidiary of Covéa. 

The company offers motor, household, protection, pet, mid and high net worth insurance and a range of commercial insurance products, through a range of distribution channels. Employing over 1800 people, Covéa Insurance has a strong people and service ethos, having Investors In People Gold accreditation and is signatory to the HM Treasury Women In Finance Charter. It also has World Class service accreditation from the Institute of Customer Service for its Motor Claims, Home Claims and Underwriting Services teams as well as Chartered Insurer status for its Commercial and Mid/High Net Worth business.

In 2018, Covéa Insurance were recipients of the Personal Lines Insurer of the Year award at both the British Insurance Awards and the Insurance Times Awards and was the top rated insurer in the Insurance Times Broker Service Survey for both Personal and Commercial Lines.

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