Toronto, Ontario — Aviva experienced a significant increase in fraudulent motor vehicle damage claims in 2023 compared to the year prior, a recent report from the global insurer shows.
The insurer, which operates in the United Kingdom, Ireland and Canada, said fraudulent claims for motor vehicle damage rose 123 percent in 2023. Motor fraud accounted for 66 percent of all detected fraud.
“Organized whiplash fraudsters have refocused their efforts on the repair aspects of a motor claim, including credit hire and repair,” noted Aviva in a press release.
Aviva also stated it has experienced increased motor damage fraud cases after the U.K. Whiplash Reforms—a series of laws and regulation changes aimed at addressing issues related to whiplash injury claims—came into effect in 2021.
Aviva said motor policy application fraud increased 64 percent in 2023. More than 50,000 fraudulent motor policies were avoided. The company also noted that the 39 percent increase in claims declined due to fraud in 2023 works out to approximately 30 fraud-flagged claims per day, with a total value of £318,000 (CAD$546,206).
Aviva is investigating a further 13,100 claims for suspected fraud, added the global insurer.
Click here for more information on Aviva’s fraudulent claims increases in 2023.
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