The emerging threat of claims farming
The emerging threat of claims farming
By Nigel Cannings ,
CTO at Intelligent Voice Claims farming is a constant issue whereby illegitimate third parties will encourage unsuspecting consumers to make claims , for which they will receive an introduction fee . The methods used to contact people move with the changing communications landscape , with platforms like Instagram allowing for fraudsters to get in front of a much wider audience more quickly than before , when using more traditional coldcalling techniques .
Fraud moves with the times : during COVID-19 , there was a decrease in personal injury and motor claims due to the restriction on movement . However , with a return to work and travel , combined with a significant lack of investment in infrastructure , we will see a rise in ‘ slip and trip ’ claims and personal injury claims relating to cyclists hitting potholes . This is exactly the type of claim that claims farmers love to see . the information they provide for a cheaper motor quote – up from 12 % in 2018 .
“ Data enrichment can help validate information provided by the customer , offer more detail about the risk , and flag the probability of quote manipulation through solutions such as LexisNexis Quote Intelligence . This uniquely uses quote history data from across the motor insurance market . Insurance providers are then in a more informed position to query the data with the customer before the policy is incepted and help avoid policies being rendered void if deliberate misstatements are uncovered at claim .”
76 May 2023