Working together to fight fraudulent claims

Allianz 200The introduction of the askCUE database earlier in the year was a welcome addition to a claimant solicitor’s fraud prevention arsenal, but as yet we have heard relatively little with regards to how effective claimant firms are finding it – Has it indeed led to a significant increase in the number of cases firms are turning away?

At Allianz Legal Protection, our activity in the fight against fraudulent claims may be a little less high profile than that of defendant insurers; however, it is no less important for our solicitor partners and their clients.

With our premiums designed on historical, actuarial based performance, any fraudulent activity ultimately leads to an increased number of cases being lost or abandoned at cost and potentially an increase in future premiums that policyholders are now, in most cases, liable for.

Therefore like our defendant colleagues, we will try to identify these claims and where we do, we adopt a zero tolerance approach, meaning the policy will be voided.

However we never take the decision to void a policy lightly and therefore an Allianz Legal Protection customer can have the confidence that an unsupported allegation of fraud, made by the other side, will not result in us withdrawing indemnity.

We do however feel that at the point an allegation is made, it is very important that we reiterate to the claimant the risk they face if they continue to pursue the claim and the allegation is proven, or it becomes clear that they have breached the terms of the policy – Honesty and transparency is key!

Running a claim that turns out to be fraudulent, or found to be fundamentally dishonest, is in no one’s interest; however we also accept that, even with tools such as askCUE now available, identifying those cases on day one is often not easy.

We certainly don’t want to move to a world where an innocently injured claimant is treated like a potential fraudster until such time as their claim is proven, beyond doubt, to be genuine; therefore we argue that a sensible balance is needed.

By applying appropriate checks, looking out for fraud indicators and being aware of the most common types of claimant fraud, we are confident that claimant law firms cannot only play an important role in the fight to drive down claimant fraud, but can also give themselves a competitive advantage by saving money and gaining a more positive reputation with defendant insurers.

It is clear that everyone has a role to play in the fight against fraud, but by having Allianz Legal Protection as their ATE insurer, genuine claimants can be confident they will have the protection they need!

James Barclay
Allianz Legal Protection Claims Manager

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