Zurich UK reports £94.79 million in fraudulent claims, with ‘slips and trips’ among the most common scams.
Zurich UK has revealed that its fraud prevention team detected nearly £260,000 worth of fraudulent insurance claims every day throughout 2024. In total, the insurer uncovered £94.79 million in bogus claims between January and December, with fraudulent injury claims making up the majority.
Casualty fraud leads the way
According to Zurich, almost two-thirds (65%) of fraudulent claims in 2024 were related to casualty incidents, amounting to 1,996 cases worth £61.14 million. These claims ranged from minor “slips and trips” to more serious injuries, with some claimants exaggerating or misrepresenting the circumstances under which they were hurt.
Scott Clayton, head of claims fraud at Zurich, warned:
“It’s crucial we remain one step ahead of fraudsters. Every false claim that slips through the net impacts our honest customers. Casualty fraud is one of the most common, and we’re seeing increasingly sophisticated techniques being used.”
Fraudulent property and motor claims on the rise
Alongside casualty fraud, Zurich also reported a notable rise in fraudulent property insurance claims. The company detected £19.35 million worth of bogus claims in this category last year. Common tactics include inflating the value of stolen or damaged items or even making completely fabricated claims.
Motor insurance fraud also remains a significant concern, with £14.3 million worth of false claims identified in 2024. This includes so-called “crash for cash” scams, in which fraudsters deliberately stage accidents to claim compensation, as well as claims for incidents that never actually occurred.
Investment in technology to combat fraud
In response to the evolving tactics used by fraudsters, Zurich has continued to invest in cutting-edge technology to detect and prevent fraudulent claims. This autumn, the insurer plans to introduce new systems designed to identify “high risk” cases by analysing data and insights from multiple sources.
Zurich also works closely with data providers to cross-check personal injury claims against online sources, helping to spot inconsistencies and suspicious activity. Additionally, a range of investigative tools is used to assess the validity of claims, ensuring fraudulent activities are identified early.
Manipulated evidence: A growing concern
One of the more concerning trends identified by Zurich is the manipulation of evidence to support false claims. In several cases, claimants have provided doctored receipts, edited photographs, or misleading documentation to strengthen their fraudulent claims.
For instance, in one claim, a customer submitted photos of items allegedly stored in the boot of a car during an accident. However, Zurich’s investigation revealed that the images had been sourced from the internet and were not genuine.
In another case, a university student attempted to claim for frozen food that had supposedly been spoiled due to a power cut in a halls of residence. However, Zurich discovered that the receipt submitted had been digitally altered. A telltale error in the reward points total exposed the fraud.
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Another incident involved a lost baggage claim, where the claimant submitted a receipt with a manipulated date. The fraud was uncovered when it was found to be the same receipt that had been used for a previous lost baggage claim.
Keeping pace with fraudsters
Clayton emphasised that while opportunistic individuals attempt to exploit insurance policies, a significant portion of fraud is carried out by highly organised criminal networks. He stated:
“Techniques are becoming more sophisticated, but so is the technology we use for detection. Fraudsters are constantly finding new ways to exploit the system, and it’s vital that insurers stay ahead by using the latest technology alongside human expertise.”
Zurich’s commitment to tackling fraud is part of a broader industry-wide effort to ensure that genuine policyholders are not unfairly affected by rising costs caused by dishonest claims.
Conclusion
Insurance fraud remains a significant issue, with Zurich UK detecting nearly £95 million in bogus claims in 2024 alone. Casualty fraud, particularly false injury claims, continues to be the most prevalent form of deception, but fraudulent property and motor claims are also on the rise.
As fraudsters employ increasingly sophisticated methods, insurers like Zurich are ramping up their use of technology and investigative techniques to safeguard honest customers and maintain the integrity of the insurance industry.
