|jml Property Insurance blog site Friday 19th August 2011|
Neil has now sent us further information about the event.
Fraud event: Disagreement over point to target fraudsters
Application fraudsters are ‘hiding behind the web’ but disagreement reigns over whether to target scammers at the point of quote or sale. Panellist Steve Sweeney, head of motor insurance at Money Supermarket, said his firm is working towards stamping out fraud at the point of quote but needs the help of the industry.
“The internet is a soft touch,” he conceded, “as it is more problematic to lie to someone face-to-face. This is not about eradicating people’s ability to buy insurance but, if people want to tell lies on online channels, then we can stop that. We have to bring things up the value chain to point of quote.”
Matt Gilham, head of financial crime at Esure, added that underwriters face difficulties because they do not have the customer’s payment information, while customers take advantage of aggregators being volume-driven and “hide behind the web”. He said insurers must decide whether they want to tackle insurance fraud at point of quote, by giving or declining one; at point of sale; or afterwards.
“It comes down to the underwriter, what they want to achieve and at what point their acceptance of risk lies. Is it turning away business before you quote or having procedures in place to challenge applications and issues such as non-disclosure?”
Neil Cook, head of specialist risks at TR Youngs, said: “If the insurer does not want to sell that person insurance, then the aggregator should not do it. Otherwise reputations suffer and more people get angry with the insurance industry.”
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