By Sue Coffey, Personal Lines Director at Covéa Insurance
Fraud is changing quickly, and protecting customers requires all of us to play our part.
At our latest Covéa Network event, experts from Cifas, Shift Technology and the Insurance Fraud Bureau joined our own specialists to discuss emerging fraud threats and what brokers and insurers can do together to protect genuine customers.
One of the biggest concerns is the growing acceptance of behaviour that might be dismissed as a small exaggeration or a “white lie”. However, deliberately leaving information off an application, taking out cover after damage has happened or adding something to a genuine claim can all have serious consequences.
Customers may find it more difficult to access insurance and other financial products, while their policy could be cancelled or voided. That is why education matters. We need to be clear about the importance of providing accurate information, not simply because it protects the insurer, but because it also protects customers from decisions that could have a lasting impact on their lives.
Technology is raising the stakes
Technology is helping our industry detect fraud more effectively, but it is also giving fraudsters increasingly sophisticated tools.
Ghost broking has evolved significantly. What was once conducted through pubs and car parks has moved onto social media, convincing websites and realistic-looking apps. Customers can now pay for what appears to be a legitimate policy and receive a professional-looking certificate, only to discover later that they have no valid insurance.
Artificial intelligence is also making false documents, cloned content and synthetic identities increasingly difficult to spot. These threats are not limited to one age group or customer type. Anyone can be misled when the content looks convincing enough.
However, technology is also part of the solution. Better data sharing, document validation and fraud-detection tools are helping insurers and industry bodies connect information and identify suspicious patterns sooner.
Brokers have a crucial role
Brokers know their customers and understand the context behind a risk. That relationship means they are often best placed to notice when something does not add up.
This is not about treating every customer with suspicion or adding unnecessary friction to the customer journey. It is about asking sensible questions, carrying out appropriate checks and speaking up when something feels wrong.
Brokers can also help customers recognise potentially fraudulent offers, particularly those promoted online. If a deal looks unusually cheap or a seller operates entirely through social media, it should prompt further questions.
My instinct has always been to trust first, but the sophistication of today’s threats means we all need to remain alert. If something does not feel right, investigate it, report it and ask for support.
Fraud is not one person’s job or one organisation’s responsibility. Insurers, brokers, industry bodies, technology providers and law enforcement all hold different pieces of the picture.
By sharing insight, educating customers and challenging what does not look right, we can make it harder for fraudsters to succeed and continue protecting the genuine customers insurance is here for.
