LONDON, 6 March 2023 – Sedgwick, a leading global provider of technology-enabled risk, benefits and integrated business solutions, announced that efforts tied to its dynamic international claims fraud strategy saved £1.23m for clients in 2022.
Sedgwick has an established programme in the UK and U.S. markets for handling the challenges that can be presented by claims fraud. Over the past three years, Sedgwick has witnessed a growing appetite in other territories such as France, Ireland, and the Netherlands to mitigate the threat of fraud, with an emphasis on strengthening capabilities with cross-border activity across all product lines. Based on 2022 data, Sedgwick’s fraud experts anticipate that against a backdrop of uncertainty, false and suspicious claims activity will continue to rise.
“Countries are at different stages of their claims fraud journeys; some are in their infancy, while others are more advanced,” said Steve Crystal, international head of claims fraud for Sedgwick. “Notwithstanding the challenges of differing legislation, regulation, compliance, culture and market approach, there’s one common denominator: no matter the location or language, claims fraud is unwelcome news.”
Sedgwick continues to support and enhance fraud strategy in additional markets and cites these examples.
- The Asia market is making good progress. Sedgwick is working with insurer clients in Hong Kong and elsewhere to help them strengthen their approach.
- In South Africa, there has been longstanding recognition of the issues at play — resulting in an advanced approach to fraud detection and containment. The Insurance Crime Bureau estimates that up to 30% of claims contain some element of concern.
Sedgwick’s investigation team has discovered cases of organised fraud across products not commonly seen in the UK and U.S., such as insurance-backed credit card protection schemes, and the targeting of products sold globally with losses in remote locations. They have also identified a growing international focus on data residency and privacy regulation. Because fraud does not sit neatly within borders, markets are encouraged to explore collaborative opportunities for sharing their data and findings while maintaining appropriate levels of local protection and compliance.
“The majority of claims are completely valid, but we must not underestimate the resolve and determination of fraudsters who are looking to beat the system,” Crystal said. “Our experts are highly trained in quickly identifying and handling suspicious claims. To bolster their efforts, Sedgwick continues to invest in technology and advanced programmes to assist them. Our approach is geared to tackling those who seek to find ways to bypass detection measures, with our experts interpreting what the analytics are telling us.”