Sedgwick saved customers £35.2 million in 2019
Sedgwick has reported that its claims fraud strategy saved clients £35.2 million in 2019
The £35.2-million value of Sedgwick’s 2019 fraud savings represents an increase of £5.4 million (18 per cent) from 2018 across home, commercial, motor and liability claims, and Sedgwick also notes that the volume of claims with fraud savings was ahead of the latest rate published by the Association of British Insurers.
Steve Crystal, Head of Financial Crime at Sedgwick International UK, said: “We’re pleased that our strategy of working in partnership with our clients has seen us protect their reputations and save them money with a strong counter-fraud performance in 2019.”
Crystal explained that it was Sedgwick’s experts that made these savings possible: “We’re investing in technology, but it’s our experts who make a difference when it matters. Perpetrators think differently, often randomly, and motives/methods change. AI tools, coupled with better cross-industry collaboration, are at the heart of our activity, but we shouldn’t underestimate the resolve of some fraudsters and their determination to beat the system. Fraudsters who deliberately invent claims will no doubt invest energy to work out how to exploit weaknesses in fraud defences. That’s why our approach is geared to tackling those who will always seek to find ways to bypass detection measures, with our experts interpreting what the fraud analytics are telling us.”
Analysing the company’s results, Crystal noted an increase across all products, most notably motor and liability (which has seen a steady rise across the last few years). Commercial claims fraud, which, he added, can be variable, was the largest component, at £14.8 million. Crystal added that home claims fraud once again saw a high volume of lower value cases, reflecting the ‘more opportunist nature’ that Sedgwick has seen in this product over the last five years.
“We recognise that most insurance claims are valid, and that part of what matters to genuine consumers is that suspect claims are quickly identified and tackled. That’s why we’ve an ethos that sees the characteristics of a good investigation – prompt action, attention to detail and establishing rapport – mirror the elements of good customer care,” Crystal said. “We build our investigation services around the core principles, and it’s been especially pleasing for the team to be recognised in this way.”