As underwriting moves from the dark ages of paper into a digital environment, the ability to undertake such fraud will be reduced. While this is probably a rare event, the potential for such activities is magnified when checks and balances are not scalable.
Digitisation, especially the application of artificial intelligence and decisioning can uncover this sort of scam much more efficiently, irrespective of whether it is internally executed or perpetrated from outside the organisation.
A former underwriter has been sentenced to 15 months in prison suspended for two years after pleading guilty to numerous false insurance claims. City of London Police’s detective constable Daryl Fryatt said: “Rachel Shoer has been persistently deceitful and given her experience as an underwriter, it’s clear that she was keenly aware of the multiple offences of fraud she was committing. The fraud initially came to light in 2015 when Shoer attempted to take out two insurance policies with one insurer. The insurer started an internal investigation, and using its own database, saw that several policies had been taken out with the same address, but under different names.