Claims specialists at Ecclesiastical Insurance prevented over £4 million in fraudulent claims during 2024, an increase of nearly £1 million compared to 2023, it has revealed.
The insurer reported a 37% rise in fraudulent property claims and a 17% increase in fraudulent casualty claims over the past year.
Ecclesiastical Insurance’s claims team identified over 230 suspected fraudulent cases in 2024, including incidents where claims for trips and falls were disproven following investigations.
The most frequently detected fraud involved exaggeration, where claimants submitted falsified documents to increase the value of otherwise legitimate claims. Fabrication was the second most common type, involving claims for incidents that had not occurred or for pre-existing damage attributed to recent events such as storms, the company said.
As part of its efforts to combat fraud, Ecclesiastical appointed James Ward as a counter-fraud specialist. Ward previously held fraud claims management roles at Hastings Direct and Insurtech INSHUR.
Some examples of fraudulent claims that were successfully challenged included falsified invoices inflating claim values; pre-existing damage misrepresented as new claims, and a claimant alleging that they tripped over chains cordoning off an area but CCTV footage showing that they attempted to jump over the chains and fell.
Additional claims, including those for high-value items, were dismissed due to a lack of supporting evidence, with some claimants withdrawing after being challenged.
Through investigations and legal actions, Ecclesiastical Insurance’s claims team prevented nearly £2.6 million in fraudulent property claims, a 37% rise from 2023, and £1.7 million in fraudulent casualty claims, an increase of 17%.
Fraudulent claims are estimated to cost the insurance industry billions annually, with the Association of British Insurers (ABI) reporting a total of £1.1 billion in 2023. Ecclesiastical Insurance joined the ABI-funded Insurance Fraud Bureau (IFB) in 2020 to collaborate with other insurers in tackling fraud in the UK.
Jeremy Trott, claims director at Ecclesiastical Insurance, commented that his team is working tirelessly to tackle the issue.
“With the UK continuing to experience economic volatility, businesses and households are already faced with difficult financial pressures,” he added. “By investing time, money and efforts into pursuing false claims and dealing with them in the strongest means possible, we can help deter would-be fraudsters and protect our customers.”
