Organised casualty fraud claims saw a significant spike from 2010 to 2014 as the government tightened up on whiplash and motor fraud, according to a new report.
The research by insurance law firm BLM and the Institute of Directors showed instances of casualty claims rose from 7,403 in 2010 to almost 20,000 in 2014.
While government policy was a factor, the rise in fraudulent claims was supported by several economic factors including increased migration, improving technology and medical science and the rise in retirement age.
Technology was also identified as a key catalyst of future claims, both commercially and domestically, with projections suggesting there will be 26 billion connected devices by 2020.
There will be a significant insurance risk for both businesses and individuals as the number of smart devices increase.
Sarah Hill, partner and head of fraud at BLM, said such advances have proven to be a double-edged sword.
“While the Internet of Things (IoT) is hailed as enabling new types of working, and promises to disrupt our home lives, it is also set to cause issues from quality control in manufacturing to employers’ health and safety regulations,” Hill said.
“All of these represent significant risks to insurers at present, and it is imperative that companies look at all avenues to alleviate this pressure, from supporting their employees with ergonomic equipment to familiarising themselves with the latest health and safety regulations.”
The research by insurance law firm BLM and the Institute of Directors showed instances of casualty claims rose from 7,403 in 2010 to almost 20,000 in 2014.
While government policy was a factor, the rise in fraudulent claims was supported by several economic factors including increased migration, improving technology and medical science and the rise in retirement age.
Technology was also identified as a key catalyst of future claims, both commercially and domestically, with projections suggesting there will be 26 billion connected devices by 2020.
There will be a significant insurance risk for both businesses and individuals as the number of smart devices increase.
Sarah Hill, partner and head of fraud at BLM, said such advances have proven to be a double-edged sword.
“While the Internet of Things (IoT) is hailed as enabling new types of working, and promises to disrupt our home lives, it is also set to cause issues from quality control in manufacturing to employers’ health and safety regulations,” Hill said.
“All of these represent significant risks to insurers at present, and it is imperative that companies look at all avenues to alleviate this pressure, from supporting their employees with ergonomic equipment to familiarising themselves with the latest health and safety regulations.”
