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Insurance companies clamping down on fraud
28 May 2008
Insurance companies are introducing more sophisticated ways to detect insurance fraud, according to Fool.co.uk
Voice recognition technology is being implemented by some insurers in order to discover whether someone is lying when they are going through their claim on the phone.
David Kuo, head of personal finance at Fool.co.uk, said: "These days the insurance companies are very shrewd and they can detect when somebody is being true on their claims forms."
With insurance fraud costing the industry £1.5 billion a year, according to the Insurance Fraud Bureau, insurance companies are keen to reduce the number of people lying in such a competitive sector.
"I think you will find that insurance companies are becoming very prudent in terms of their finances. It’s become a very cut throat business and insurance companies are very careful about how they pay out these claims," said Mr Kuo.
Research by insurance group RSA revealed that 56 per cent of people thought that it was "unlikely" that anyone committing insurance fraud would be caught.
