Sedgwick, the global provider of technology-enabled risk, benefits and integrated business solutions, has revealed that efforts tied to the organisation’s international claims fraud strategy saved its clients £49.4 million in 2023.
Q123 saw continued double-digit inflation, which placed added financial pressure on motorists, homeowners and businesses alike.
This also contributed towards an 8% increase in claims identified as suspect across Sedgwick’s UK book of business.
Moreover, the company also noted that the average cost of investigated claims increased in 2023, which was driven not only by inflation, but also by a spur in fraudulently exaggerated, high-value escape of water claims made during the UK’s winter freeze event that took place in 2022.
Ian Carman, Director of Sedgwick’s UK fraud and investigation services operation, commented: “Over the past three years, the value of savings delivered to our UK clients has grown by 73%. This is testament to our unrelenting effort to identify dishonest claims, which in turn protects our clients and their honest customers from the cost of fraud.”
Adding: “I’m pleased that our ability to deliver these results, which relies on a blend of sophisticated counter-fraud technology solutions and colleague expertise, has been achieved without any detrimental impact to the customer experience. We continue to adapt our strategies to identify and tackle new and emerging fraud risks to deliver better results for our clients and their customers.”
In addition, Steve Crystal, Head of Sedgwick’s international fraud and investigation services, stated that regulators are taking “greater interest” in fraud and abuse oversight, and global markets are, in turn, focusing more on financial stewardship.
He said: “We’re seeing a growing appetite for mitigating the threat of fraud internationally. At Sedgwick, our emphasis remains on strengthening our capabilities with cross-border activity across all product lines. Whether insurers have a global presence or operate solely in local markets, the common denominator is that claims fraud is increasingly viewed as bad news.”
Meanwhile, Sedgwick also confirmed that it’s team have observed a recent increase in organised fraud rings, which continue to adapt how they target financial services.
Crystal, added: “Fraud doesn’t sit neatly within borders. We encourage markets to explore collaborative opportunities for sharing their findings while maintaining appropriate levels of local protection and compliance.”
Another important factor to highlight, is that later in the year, Sedgwick in the UK will look to further enhance its offering by launching an innovative suite of technology solutions which are expected to transform claims fraud risk identification.
Crystal, provided some context: “We’re pleased to continue strengthening our fraud strategy internationally and providing proportionate and ethical investigation services around the world. This lies at the heart of how Sedgwick helps clients protect their valuable assets and the majority of their customers who make genuine claims.”
