Aviva detected 14% more claims fraud in 2024

Aviva reported a 14% increase in the number of claims it declined due to fraud in 2024, uncovering more than 12,700 suspect claims worth £127m – equivalent to 35 bogus claims a day totaling around £349,000^[1]. Aviva is investigating a further 14,600 claims for suspected fraud. Aviva’s 14% rise in detected claims fraud last year follows a 39% increase in 2023. The insurer also identified fraud on more than 98,000 insurance applications, nearly double what it detected last year.

The changing face of motor claims fraud

Motor claims fraud makes up the majority of fraud Aviva detected, accounting for three out of four bogus claims. Within this, Aviva has seen a trend of fraudsters moving away from deliberate personal injury fraud such as crash for cash, and an increase in the number of exaggerated claims for injury.

Fraudsters are also increasingly looking to exaggerate and inflate the cost of repair and credit hire claims. This led to a 24% increase in the number of dishonest claims for motor damage in 2024. Since 2021, motor damage and credit hire fraud has grown by a staggering 275%.

Spoof ads

Linked to the increase in exaggerated damage claims, ‘spoof ads’ from a small number of unscrupulous claims and accident management companies (CMC / AMC) continue to mislead customers and inflate the cost of repair and credit hire claims.

Motorists often find a spoof ad in the immediate aftermath of a road traffic accident, while searching for their insurer’s contact details on their mobile phone. Believing they’re dealing with their insurer, motorists agree to services from a CMC or AMC. If disputed, they can end up paying tens of thousands of pounds. Although these services would normally be covered as part of the customer’s insurance policy, because the customer inadvertently (and often unknowingly) claimed via a CMC or AMC, the insurer is both unaware of the claim and unable to help the customer.

Liability fraud

The impact of the whiplash reforms may also help to explain the 12% growth of public liability fraud, as organised fraudsters pursue bogus and exaggerated claims for injury, such as a staged slip, trip or fall. Fraudulent employers liability claims remained broadly stable.

Household fraud

Exaggerated or fabricated claims for household items now account for one in 10 fraudulent claims Aviva detects. Unlike motor fraud, much of which is organised, the growth of household fraud is mostly opportunistic, as claimants – perhaps still affected by the cost of living – seek to falsely inflate their claim. The most popular items that were fraudulently claimed for were:

1.      Mobile phones

2.    TV's

3.    Jewellery

4.    Laptops/tablets

5.    Watches

Commercial insurance fraud is also on the rise

Commercial insurance also saw a marked increase in fraudulently exaggerated claims costs. Property fraud led the way with an 89% increase in 2024, as so-called ‘enablers’ – third party claims professionals – seek to attach themselves to a claim with a view of exaggerating and building extra cost into the claim. In particular, Aviva saw an increase in the number of exaggerated claims for escape of water.

Commercial motor insurance fraud also increased, up 14% in 2024. As with commercial property, exaggerated costs were the leading factor. Aviva’s increased detection can be attributed to its investment in people, technology and improved investigation techniques.

Application fraud and ghost broking

The number of fraudulent insurance applications nearly doubled from 2023, to more than 98,000. This increase reflects the continued investment Aviva has made in its detection capabilities and training of its application fraud investigators.

Within these figures, Aviva detected an 18% increase in ghost-brokered policies and linked an additional 8,600 cases to open investigations into known ghost broking cases. Aviva has invested in its counter-fraud capabilities at point of quote and application stage to help protect young drivers from ghost brokers online. 

Investment in fighting fraud

Insurance fraud continues to evolve, and keeping pace with the latest MO’s employed by fraudsters requires constant vigilance. To ensure Aviva can respond to the changing face of fraud, Aviva’s Counter Fraud Team implemented a rolling program of fraud awareness training, delivering more than 3,300 hours of content to claim handlers, engineers, and suppliers during 2024.

Another aspect of Aviva’s continued investment in its fraud capabilities is a dedicated group that supports police investigations into organised crime. Although these offences are not fraud, they can have serious and detrimental effects on customers and their communities. This unique function allows

Aviva to leverage its relationship with law enforcement and creates opportunities for the criminal prosecution of application fraud.

Collaborating with law enforcement

Aviva also works collaboratively with law enforcement to pursue other forms of deterrence to protect its customers. In the face of well-publicised challenges facing the UK’s prison estate, Aviva, working with the Insurance Fraud Enforcement Department, a branch of the City of London Police, successfully secured the first use of both the Serious Crime Prevention Order (SCPO) and the Proceeds of Crime Act (POCA), as ways to hold fraudsters to account.

Pete Ward, Head of Claims Counter Fraud at Aviva, said, “The overwhelming majority of our customers are honest, and we are committed to settling their claims quickly. But where we detect insurance fraud, we have a responsibility to protect our customers from its harmful effects and additional costs.

“So it is encouraging to see a continued improvement in our fraud detection figures. Our ongoing investment in advanced analytics, machine learning models and continuous training for our people has significantly improved our fraud detection rates. We expect this trend to continue against a backdrop of ongoing economic hardship, which we know is a contributing factor to committing insurance fraud.

“We were also the first insurer to successfully work with IFED to use both the Serious Crime Prevention Order and Proceeds of Crime Act to ensure convicted fraudsters face imposing consequences if they reoffend. We will continue to stay ahead of the evolving threat of fraud and help to protect our customers from the greedy and illegal acts of fraudsters.”

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References:

¹_{All fraud data used in this press release is based on Aviva’s own analysis of its claims and underwriting fraud data for the calendar year 2024. [↑]}

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