GT Motive for Insurers

Protecting Yourself from Digital Fraud

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As the UK continues to recover from the coronavirus pandemic, cost-of-living crisis and general economic uncertainty, digital fraud has become a high-risk possibility for many businesses, as financial burdens continue to impact all areas of the supply chain. 

When looking at the latest data trends in fraudulent insurance claims, Aviva state that automotive fraud takes the number one spot for the biggest types of fraud committed, accounting for 60% of all claims fraud detected in 2021.

What’s more, according to the TransUnion quarterly fraud report, insurance was one of only two industries that saw an increase in digital fraud globally year over year.

For the estimatics industry, this is a worrying trend, as it leaves the entire supply chain vulnerable to having the data, technology and digital assets impacted.

Let’s explore this in more detail.

Reasons behind the rise in insurance claim fraud

Fraudulent insurance claims are on the rise in the UK, with 20% of claims from 2022 so far thought to contain fraudulent information, according to a recent survey by FRISS. This is an increase of 18% compared to their previous survey from 2020, and the research uncovers that whilst insurance professionals have always had their suspicion about fraudulent claims, the data trends indicate a significant increase in the later days of COVID-19, claiming that this is because fraudsters had no choice but to become ‘more creative.’

Triple-I comment on this notion of ‘creativity’ directly in their recent report, highlighting that “unfortunately, the acceleration of digital processes that began well before the pandemic also provides opportunities for fraud.”

And yet, where the FRISS survey states that fraud detection software services have proven to be highly effective overall – including improving loss ratio by 59%, staying ahead of developing fraud schemes by 53%, and increasing investigator efficiency by 52% – insurance fraud still leaves consumers and claims handlers facing unnecessary and unlawful costs.

Which, when put into perspective, these fraudulent claims resulted in over 11,000 instances of claims fraud last year alone, equating to a total loss of over £122 million as reported by Aviva in their latest findings.

Securing data, technology and digital assets

The TransUnion findings report that the insurance industry has seen the biggest growth in digital fraud attempts recently, increasing by 159% from Q2 2021 to Q2 2022. The only other industry which saw an increase in digital fraud during the time timeline was logistics, reporting a 13% increase most impacted by shipping fraud.

However, the most common type of insurance fraud reported, involved first-party application fraud. This occurs when somebody submits an application to an insurer containing false or manipulated information in order to receive certification, a lower rate or better terms for a policy.

In response to this rise, the industry can take certain measures to protect itself, throughout all areas of the supply chain. For the automotive sector, securing data can be prioritised moving to new technologies, digital tools and password or user protected system access rights. For estimatics, it could mean using sophisticated MI reporting or integrating APIs with trusted partners.

That’s where we come in.

GT Global

Offering a fresh approach and a modern platform, GT Global can enhance the reliability, efficiency, and sustainability of your claims process; helping to protect your business from potential digital fraud, and keep your data safe and secure.

In fact, we host over 100 TB of data and processes 60 million parts prices per month, all from 175 different data sources. Plus, parts prices are updated daily, and vehicle models updated every 2 weeks, ensuring that the platform is always up to date, removing the need for duplication of entry and any supplementary estimates.

We’re here to help

Built to connect all stakeholders and network partners within a single, secure platform, GT Motive offers a modern and intuitive solution for complete claims management that reduces claims costs and cycle times, whilst increasing efficiencies and protecting businesses.

We do this by offering a more accurate and up to date data within the system, such as part price, VIN query and ADAS identification. As a result, GT Motive can help reduce the number of supplements required and any double keying, enabling your productivity to remain at the highest level.

But the best part?

We’re constantly updating our data points to ensure our entire supply chain have the most precise data, always. For example, new vehicle models are added bi- weekly to our OEM prices, with data being updated daily in our solution. This helps us to offer an accurate 96-98% car parc coverage, making our system a highly reliable tool for a claims department.

Keen to find out more?

Request your free GT Motive trial today.