| UK life insurance companies are becoming so | | | | identify potential frauds, and there are much |
| concerned at the amount of false claims that | | | | better procedures at claim level to allow insurers |
| they have issued a reminder to would-be | | | | to probe further. Systems introduced since 2006 |
| fraudsters of the existence of the Insurance | | | | allow analysis of insurance policies and claims |
| Fraud Bureau (IFB), first launched in 2006. | | | | records from all the insurers participating in the |
| The life insurance industry is worried that the | | | | scheme, and can highlight any suspicious activity. |
| recent high-profile case of 'canoeist' John Darwin | | | | Basically, the bureau can use insurance companies' |
| may have put ideas in some potential fraudsters' | | | | records to compare life insurance claims and |
| minds, so is keen to nip any such thoughts in the | | | | assess whether they are likely to be genuine, |
| bud before more people go 'missing', presumed | | | | fraudulent, or perhaps the work of an organised |
| dead. | | | | criminal ring. |
| Although originally launched to counter the actions | | | | The IFB is going to extensive lengths to catch |
| of criminal gangs, the IFB soon added investigation | | | | fraudsters and methods to determine whether |
| of fake insurance claims to its remit. Technical and | | | | claimants are telling the truth include the use of |
| corporate affairs executive for the British | | | | voice analysis software, which can allegedly pick |
| Insurance Brokers Association (BIBA), Graeme | | | | up subtle changes in a caller's telephone voice. The |
| Trudgill insists that fake claims damage everyone | | | | computer program will identify any nervousness |
| as they make insurance more expensive, for | | | | and alert investigators to a potential fraud. But, |
| which we all pay in the form of increased | | | | that is about all that the IFB will reveal about its |
| premiums. | | | | methods. All other detection methods are being |
| Systems have become much more integrated | | | | firmly kept under wraps in case they are |
| and with the life industry backing the IFB and | | | | compromised by would-be fraudsters. |
| providing much access to information, Trudgill | | | | In the wake of the global credit crunch and the |
| says that it is easier to spot potential fraudsters. | | | | rapid deterioration in life assurance valuations, UK |
| He concedes that life insurance fraud is becoming | | | | insurers will be doing all they can to weather the |
| a problem, but also claims that because the IFB | | | | storm, and that includes mitigating any potential |
| are better able to investigate that anyone thinking | | | | fraud losses - guaranteeing that any claims will be |
| of perpetrating a fraud should think twice. | | | | vehemently policed over the coming year. |
| Extensive modelling has been developed to | | | | |