The claims teams at Allianz have successfully prevented £38.4m worth of Commercial insurance fraud since the start of 2023 with over half of that being related to casualty fraud, particularly fraudulent major loss claims.
Overall Allianz has seen a £2m increase in fraud savings against the prior year. This highlights the improvements the business has made with early detection, through the analysis of data from machine learning, which assists in finding suspect claims.
Commercial Property fraud has surpassed expectations at the half year point, with savings of £1m recorded above plan, and a further £1m saving in detected application fraud, which is down to the hard work and dedication of the team focussed on front end fraud prevention.
Exaggeration within claims is still a key trend that Allianz is seeing, as well as increasing fraudulent behaviours around claims farming. In the application fraud space, there is a higher prevalence of phoenix companies and an increased level of false No Claims Discounts (NCDs) and Confirmed Claims Experiences (CCEs), ghost broking is also showing signs of growth.
Recent cases include:
James Burge, head of counter fraud at Allianz Commercial, commented:
“Our experienced investigation teams are utilising our new machine learning tool to enable them to identify claims earlier and more quickly, ensuring that those who falsify all types of claims are fully investigated and held accountable. We want to ensure our law abiding customers are fully supported and covered with the right levels of insurance, this is even more important during these difficult times.”
About Allianz Holdings plc
Allianz Holdings plc is the non-regulated holding company which owns the principal insurance operations of Allianz SE in Great Britain including Allianz Insurance
About Allianz
The Allianz Group is one of the world's leading insurers and asset managers with more than 122 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 717 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.7 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2022, over 159,000 employees achieved total revenues of 152.7 billion euros and an operating profit of 14.2 billion euros for the group***.
*Including non-consolidated entities with Allianz customers.
**As of March 31, 2023
***As reported – not adjusted to reflect the application of IFRS 9 and IFRS 17.
Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.
No duty to update
The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.
Email: sara.robinson@allianz.co.uk
Mobile: 07918 470 463
