Combating Insurance Fraud: Why Collaboration is the Key to Smarter Investigations

Insurance fraud continues to be a serious and growing threat. In 2023, the Association of British Insurers (ABI) reported £1.1 billion in fraudulent claims, representing a 4 percent increase from the previous year. As fraud becomes more complex, insurers must evolve their strategies to stay ahead.

In-house investigation teams remain a vital part of the solution. These teams offer deep knowledge of company policies, quick access to customer histories, and the ability to act swiftly when something appears suspicious. Their understanding of internal processes helps them identify patterns and irregularities that could signal fraudulent activity.

However, the changing nature of insurance fraud is pushing many companies to look beyond their internal resources. Modern scams often involve staged accidents, false documentation, or organised groups working across multiple claims. This is where private investigation and surveillance professionals provide real value.

Private investigators bring specialist skills and technologies to the table. They use tools such as drones, GPS tracking, and covert surveillance to gather evidence in a discreet and legal manner. Many have cross-industry experience, which allows them to recognise fraud techniques that internal teams may not encounter as often. Crucially, they also offer an objective perspective that helps remove any internal bias from the investigation process.

One recent example highlights the effectiveness of this approach. In London, there has been a notable rise in "cash-for-crash" scams, particularly involving mopeds. Since June 2021, the City of London Police has reported more than 4,000 incidents. These are complex cases that require both policy knowledge and field investigation. By combining internal expertise with external surveillance, insurers have been able to detect these scams more effectively and build stronger legal cases.

Working together allows both parties to play to their strengths. Internal teams can focus on the policy and claims side, while private investigators handle surveillance and external information gathering. This not only improves detection rates but also ensures resources are used efficiently and cases are backed by comprehensive evidence.

As fraudulent activity becomes more sophisticated, so too must the response. Blending the insights of in-house teams with the capabilities of private investigators creates a well-rounded, effective strategy. For insurers looking to protect their business and their customers, this kind of collaboration is no longer optional. It is essential.