IFB launches new Broker model
01 October 2014
The Insurance Fraud Bureau (IFB) has unveiled a new broker membership model that will open intelligence sharing to a wider broker audience and further strengthen the industry’s collective fight against organised fraud.
The new two-tier membership model has been designed to suit both large and small brokers, giving them more tailored access to IFB intelligence and making it easier for them to work with the IFB.
Under the new model, brokers can choose access on a scale that suits their needs and resources. The full suite of IFB products and services, typically suited to larger brokers, is available to those that want it. For those that need to receive intelligence in more manageable volumes, typically the smaller organisations, high risk information (such as suspected ‘Ghost Broker’ rings or misrepresentation) can be prioritised and issued.
Ben Fletcher, IFB Director, said:
“We’ve long said that information and collaboration are the most powerful weapons in the fight against insurance fraud, so involving more brokers, and their data, makes perfect sense. Information captured by brokers at the application stage will help the industry shine a light on ‘Ghost Brokers’ and misrepresentation.”
“With the recent rise of organised application fraud, and ‘Ghost Brokers’ in particular, implementing a new model to reach a wider broker audience is a logical extension of the IFB’s service.”
Figures from the ABI estimate that detected insurance fraud costs £1.3 billion, with a further £2.1 billion going undetected. The scale of application fraud has also been uncovered by the ABI for the first time, with more than 180,000 incidents of application fraud being reported in 2013, an average of nearly 3,500 each week.
The increase in application fraud seen by the industry corresponds with some worrying consumer attitudes towards insurance fraud. A 2013 study by LexisNexis highlighted that around a quarter of those surveyed believing that disclosing inaccurate information at application stage is acceptable to obtain a lower premium. Of the more familiar tactics witnessed by the industry, 13% believe giving the wrong address and 15% believe that giving inaccurate no-claims discount details are both acceptable ways of reducing premiums.
The requirement to improve counter-fraud capabilities at point of quote has never been greater and the new IFB broker model is intended to help more brokers manage risk appropriately.
The new membership model has been launched following consultation with the British Insurance Brokers’ Association (BIBA) to establish how the IFB can better support more of the broker industry.
Graeme Trudgill, Executive Director of BIBA said:
“The new broker model from the IFB is a great addition to a broker’s anti- fraud armoury. BIBA take insurance fraud very seriously and this new tier will help a greater number of brokers to more easily identify and prevent fraud. This is good news for our members and also means better results for insurers and ultimately our members’ customers."
At the time of launch two brokers have already signed up to the new model, with Adrian Flux Group and Carole Nash set to be the first to benefit from the new model.