OPERATIONAL MANAGEMENT
We work as an independent team in partnership with your staff to improve operational efficiency in a way that ensures their ownership and long-lasting results.
Services focus particularly on insurance claims, anti-fraud programmes, new business, sales and servicing.
Insurers - do you have an effective anti-fraud strategy?
Did you know?
- The Association of British Insurers estimates over £2bn worth of fraudulent claims are submitted to insurers by policyholders, 'third parties' and suppliers each year on personal lines general insurance.
- This equates to about 10% of the total value of personal motor claims and 15% of household claims.
- False motor accident claims are the biggest area of insurance fraud with about £400m paid out every year.
- Word gets around very quickly among certain sections of the criminal community about which insurers have poor anti-fraud procedures.
- The FSA is concerned that many insurers do not have an effective anti-fraud strategy.
- There is a new code of practice coming for insurers carrying out anti-fraud investigations, covering issues like compliance with data protection and human rights legislation.
An insurance client with motor and household claims of about £259m per year was concerned that its lack of up-to-date anti-fraud procedures left it vulnerable to highly organised criminal gangs and fraudsters. Like many insurance companies, it relied heavily on the honesty (and memory) of its proposers, the use of unsophisticated 'scorecarding techniques' at new claim stage and the skills or sheer luck of its claims handling staff.
CWMC was called in to develop and implement a state-of-the-art general insurance anti-fraud strategy. This work is ongoing and focuses on tackling fraud at key stages preventing people fraudulently taking out policies in the first place, making sure everyone pays the right premium based on risk, and implementing proper investigations at claims stage.
We are setting up a dedicated anti-fraud unit for our clients and implementing software solutions such as CUE and Hunter.
