Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • December 2015
12

There's no single profile of fraudster, says insurance taskforce

Open-access content Monday 7th December 2015 — updated 9.58pm, Wednesday 6th May 2020

Frauds come in a number of different shapes and sizes and they don't fall in a single box or category, according to the chair of Insurance Fraud Taskforce.

David Hertzell went on to say it was important to understand the variety of types of people who commit fraud "because counter measures are going to match people who were doing it."

Speaking at a conference on general insurance in the UK, organised by the Westminster Business Forum, Hertzell outlined three different types of fraudsters: organised criminals; opportunistic but pre-meditated individuals who are not involved in professional gangs but commit fraud with some planning; and those labeled "spur of the moment", which means these individuals commit crimes without planning. 

"So what works with the organised criminal fraud is less effective in dealing with opportunistic fraud," he said.

Hertzell said the latter was "probably one of the most difficult areas to deal with" because it was very hard to detect.

He stated lack of customer education could add pressure to insurers, adding: "Policy holders don't have a clue what they are buying. We all understand what an excess is, most people don't. People buy a product they don't really understand. When it comes to making a claim and it doesn't turn out quite as they expect." 

He said customers would then put themselves into a "victim mentality" and immediately put their retaliations first.

There is also a perception of low or no penalty if they get caught. "They also feel unlikely to be caught. When it comes to opportunistic fraud, that's true. There is a perception that penalties are low. Actually they are not but nonetheless there's a perception of that."

Apart from consumer education, Hertzell stressed good use of big data, as opposed to fragmentation of databases, could help claims investigation. Commitment from senior management would also add efficiency to the industry for providing more time and resources such as investment in IT. 

This article appeared in our December 2015 issue of The Actuary.
Click here to view this issue
Filed in
12
Topics
General Insurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Environmental, Social and Governance- GI Actuary

England, London
£70000 - £170000 per annum
Reference
145888

Calling All Australian Actuaries

England, London
£50000 - £120000 per annum
Reference
145887

Calling all GI Actuaries looking to move into contracting

England, London
£700 - £1000 per day
Reference
145886
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ