Allianz Commercial detected £77.4m worth of claims fraud in 2023 – up from £70.7m in 2022 – with application fraud savings of £1.95m. The insurer says that the current cost-of-living crisis is having a continued impact on businesses, with the financial struggle leading to an increased insurance fraud threat.

Claims Fraud detection overall has increased by 10% from the prior year with the use of the Allianz machine learning tool, Incognito, boosting detection rates alongside the dedicated work of the claims validation teams.

Key trends identified in the Allianz report include a marked increase in the attempted use of false confirmed claims experience – the commercial equivalent of a no-claims bonus – which shows a potential link to ID theft of genuine companies. While 2022 saw a reduction of ‘crash for cash’ motor accidents, this trend was reversed in 2023 with a 25% increase in referrals.

Other trends in motor fraud include a continuous issue with mopeds and couriers inducing and fabricating incidents. Allianz has also identified similar accidents with pedal cycles and pedestrians which could be linked to changes in the Highway Code.

In the casualty space, the rise in professional enabler-led fraud continues and within the property arena Allianz recorded a 41% increase in investigations relating to deliberate non-disclosure compared to 2022. This included policyholders falsifying previous claims history and not disclosing criminal convictions or directorships of liquidated companies.

James Burge, head of counter fraud, Allianz Commercial, said: “We have seen an uptick across the board on all aspects of insurance fraud in 2023. Our success in detection and preventive measures lies in the superb collaboration across our teams, with effective strategies and support from our suppliers and leadership teams. We remain focused on fraud detection to protect our honest customers in 2024.”