Injury claims and insurance fraud on the rise in Scotland

Global law firm introduces counter fraud team in response 

Edinburgh based law firm DWF has launched a Scottish counter fraud team in response to an increase in injury claims activity and growing client demand in combating insurance fraud.
It says Scotland has seen a 16.6% increase in injury claims over the last four years, which amounts to an extra 7,419 a year since 2011-12 or 20 new claims a day.img_2463-copy
The firm recently held two Counter Fraud Conferences in Glasgow and London to examine the legal perspective on counter fraud in Scotland in respect of the changing nature of claims, with a particular focus on the following:
  • Recovering money from fraudsters
  • The intelligence landscape around current fraud trends
  • How leveraging data through predictive analytics and profiling can help strategies to combat fraudsters
  • The use of telematics in claims
img_2407-copyOllie Little, head of the Insurance Fraud Enforcement Department, City of London Police (IFED), said: “Since 2012 IFED have been working in close partnership with the insurance industry to tackle fraudulent attacks, dealing with over 1700 suspects and securing over 100 years of jail time.
“The motives, methods and means are always moving, and that’s why it’s vital for all partners to come together and work on a collaborative response.  Insurance fraud affects our communities and it’s important for Scotland to learn the lessons from the experience of England and Wales to protect theirs.”
Lorraine Carolan, DWF’s national head of counter fraud, said: “Fraud north of the border is both a present and continuing threat to our clients.
“Through our market leading, award winning, predictive analytics and telematics, and new Scottish counter fraud team, DWF is ensuring it has sufficient legal and intelligence tools to combat this increasing threat. We will continue to work collaboratively with the industry to combat fraud.”
Mike Brown, head of intelligence & disclosure at Direct Line Group, said: “Insurance fraud is an inherent problem within the industry, adding approximately £50 a year to the average household’s insurance premiums.
“Dedicated insurance fraud conferences, such as DWF’s Scottish Counter Fraud Conference, are a great opportunity for industry members and partners to discuss current hot spots, patterns and trends whilst exchanging intelligence in a compliant manner.
“This year’s conference provided a real time insight into insurance fraud risks within Scotland and how best to tackle such, utilising Scottish powers from both a legislative and regulatory point of view.”
img_2425-copySteve Jackson, head of financial crime & MLRO, Covea, said: “There is clear evidence that fraud is migrating across borders to capitalise on unfamiliar processes. A proactive approach to fraud screening, access to good intelligence and a legal partner with the right expertise, such as DWF, are essential to remove the fear factor associated with cross-border claims.”
The conferences were attended by more than 100 clients DWF clients including insurers, Lloyd’s syndicates, and the Association of British Insurers.
Guest speakers included Ollie Little, head of IFED (Insurance Fraud Enforcement Department, City of London Police); Steve Jackson, head of financial crime & MLRO (Money Laundering Reporting Officer), Covea; Mike Brown head of counter fraud intelligence, DLG and Neil McKenzie intelligence manager, DLG, who presented on how both Covea and DLG have taken steps to tackle and successfully combat fraud claims in Scotland.
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