Fraudsters costs Insurance industry hundreds of millions each year|FC Business Intelligence

LONDON - June 11, 2015 - PRLog -- The war on fraud is costing the Insurance industry £200 million each year to pursue. This is a costly business and employing the most effect and cost efficient strategy to overcome this risk in Insurance is paramount.

Fraudsters have learned how to out-manoeuvre insurers. In a recent industry white paper In the Mind of the Modern Day Fraudster: Fighting New Types of Crime in Insurance (http://1.fc-bi.com/LP=3432), interviewee Adele Sumner, Head of Fraud Intelligence at RSA Group states that “The fraudsters are aware that we are targeting them.” She admits that although motor fraud is now a managed risk, fraudsters are turning their attention to “the faceless, digital customer.”

Insurers admit that a huge part of the battle is the growing confidence of the Fraudster. Ursula Jallow, Group Head of Financial Crime Intelligence explains in the same white paper that “[Fraudsters] admitted that had they known there was a chance of getting caught and going through what they did, from a personal vulnerability perspective, they would never have done it.”

Jallow emphasises that “the core is to minimise the chances of fraud before you get to it” and agrees with Sumner that that improved response front end of the business is the best way to defeat fraudsters. “Many Insurers are investing their money in acting offensively towards fraud rather than waiting to abate it at the claims stage when it is often too late” explains Editor of the paper Marsha Irving, Head of Financial Services at FC Business Intelligence.

Even the best Fraudsters do get caught however and Insurers can prevail as winners in this battle. This is true of opportunistic Fraudster Tony Sales – Britain’s Greatest Frauster – who will join an industry event alongside Jallow and Sumner. Reformed Fraudster Sales is now working on the side of the Insurance industry to support the fight against fraud by helping insurers better understand the mind of the modern fraudster.

About FC Business Intelligence

FC Business Intelligence has been around for over 20 years and provides news, reports and events services across 30+ industry verticals. Our Financial Services department already runs several white papers, surveys, webinars and conferences in the Insurance, Banking, and Asset Management space.

Brittany Marshall,Head of Marketing, Financial Services Division,FC Business Intelligence |T: +44 (0) 207 422 4369 |  E: bmarshall@fc-bi.com