Pet insurance fraud is woof justice for honest owners
Recent industry research suggests that insurance fraud is in decline, but remains unacceptably high, with pet scams among the newest type of fraud affecting the insurance world. The Association of British Insurers (ABI) has stated that insurers detect 2,400 fraudulent claims valued at £25 million every week. Aquarium Software believes that pet insurance fraudsters are now operating on borrowed time, thanks to the latest insurance technology platforms, which have now started to weed out spurious claims that would have previously been paid.
Fraudulent insurance claims represent a major challenge facing the industry, costing £1.32 billion in the UK, in one year alone. Pet scams can include horrific acts such as killing an animal in order to claim for an early death pay-out, as well as purposely injuring pets in “fake accidents” to claim cash.
Better use of technology, coupled with greater customer engagement is allowing for a fully integrated approach to the claims journey, which in the past was disjointed and made it easy for fraudsters to commit such crimes. “Modern technology is delivering the data that is proving such an invaluable insurance anti-fraud tool, particularly where the types of fraud are becoming increasingly sophisticated and widespread,” said Aquarium Software Director, Mark Colonnese. “Indeed, the benefit of a crackdown on these pet scammers will be seen in decreased long-term policy premiums for honest pet parents,” added Mark. The net result is that the honest consumers end up footing the bill via their policy premiums due to fraudulent claims such as these. With the number of successful fraudulent claims now in decline, customers can ultimately hope to see the true cost of their insurance premiums following a similar trend.
“Although there is still much work to be done on clamping down on these criminals, the introduction of high-end technology to the pet insurance sector that is specifically designed for the task in hand, is a great step in the right direction,” added Mark. “We should collectively be able to almost eliminate insurance fraud, once the full power of next generation insurance technology is fully unleashed,” Colonnese concluded.