Aviva detected fraud in almost 2,200 commercial motor policies in 2015, using various anti-fraud tools, the London-based insurer revealed. But the company is taking its fight against fraud to a new level — by screening all commercial motor policies at the time of insurance application.
Using “Hunter,” a fraud detection tool from Experian, Aviva can screen key underwriting data, such as the company’s name, address and vehicles to be covered, against shared and proprietary Aviva fraud databases, Aviva said.
“Screening our commercial motor book is another significant step toward closing the front door to fraud,” said Tom Gardiner, Aviva’s head of Fraud, noting that the company already successfully screens its personal lines motor book.
Aviva’s policy screening identifies features or behavior which may indicate suspicious or fraudulent applications, while checking against previous known and suspect fraud.
Citing one success story, Gardiner said that Aviva has been able “to identify a large-scale application fraud ring which set up policies with the aim of making bogus claims.”
“We were able to avoid the policies and avoid fraudulent claims worth more than £3 million [$4.3 million]. In 2015 we identified over 11,000 instances of personal motor application fraud,” he added.
Aviva also has detected commercial fraud cases, which previously were avoided in its personal motor book, Gardiner indicated. These clients went on to set up bogus companies in a vain attempt “to insure their vehicles under a commercial motor product to hide their identity.”
“Application fraud can range from deliberately misrepresenting claims history, convictions and addresses in order to access cheap cover, to buying policies with the purpose of making bogus claims,” Aviva said in a statement.
Screening commercial motor policies reduces the effect that fraud can have on commercial motor premiums for genuine customers, the company added.
“The fight against fraud begins at the front door,” Gardiner emphasized. “The committed fraudster will use any front door to access cheap motor cover or to make fraudulent claims. By screening all of our commercial and personal motor business, we are slamming those doors shut, protecting our brokers and genuine customers, and keeping premiums low for innocent motorists.”