Insurance Fraud

At LV= General Insurance we believe we can tackle insurance fraud together...

Our stance on fraud, bribery and corruption

At LV= we’re serious about protecting what you love. That includes protecting you and our business against fraud. Fraud affects all of our customers, often by increasing premiums, so we’ll do whatever we can to stop it. The Association of British Insurers (ABI) reports that in 2022, insurers detected 72,600 dishonest insurance claims valued at £1.1 billion.

As well as being harmful to our customers and our business, the money made from fraud can be linked to organised crime and even terrorism. So, it’s vital that we have robust internal controls in place such as processes, systems and staff training to help prevent fraud, bribery and corruption, and other financial crimes. This is in line with the law, regulation, our values, and our social responsibilities.

As part of our commitment to stopping fraud, we’re members of anti-fraud organisations such as Cifas and the Insurance Fraud Bureau (IFB) which includes Cheatline. We also contribute to the Insurance Fraud Enforcement Department (IFED) run by the City of London Police.

Let's take a look at some of the most common types of insurance fraud...

Illegal insurance intermediaries or 'Ghost Brokers'

Ghost broking

At LV= we sell some of our insurance policies through brokers and intermediaries but we only deal with authorised firms. Unfortunately, fraudsters sometimes target the places where you look for a quote online. When searching for a good deal on your insurance, be aware that if it seems too good to be true then it probably is.

Matt Crabtree, Head of Fraud Strategy at LV= General Insurance comments: “We’ve been cracking down on ghost broking, intercepting much more activity as fraudsters increase their online presence. What’s encouraging is as a result of working to identify those behind the crime we’ve seen a decline in the number of fake policies taken out with us."

An illegal intermediary may claim to be a legitimate broker, work for an insurer, or know someone in the business. They'll often claim to offer discounts you can't get anywhere else but the quotes and insurance they arrange aren't based on your true personal details or circumstances, and cover is often paid for using a stolen credit card or false bank details. This can mean that your insurance isn't valid so your car could be seized by the police.

Ghost Brokers are also now using social media like Facebook and Instagram to advertise cheap insurance.

What to do to avoid buying fraudulent cover

Contact us directly or use a legitimate insurer, or broker.

Check the company you're dealing with is authorised by the Financial Conduct Authority by entering their name on the Financial Services Register.

False no claims bonus (discount) certificates

Proof of NCB or NCD is usually a letter or certificate from your previous insurers, or your renewal invite. It'll show the number of years in which you have not made a claim and they won't charge you for supplying it. However, there are firms operating on line who offer to produce false No Claims Bonus (Discount) certificates for a fee.

Providing fraudulent documents to your insurer can invalidate your insurance and affect any future policies you buy. If you're approached by anyone attempting to sell you a falsified document or you know of any website offering this, please contact Cheatline on 0800 422 0421.

Induced motor incidents or 'Crash for cash'

Crash for cash claims (induced motor incidents) are estimated to cost the UK insurance market over £340m annually. It's where a fraudster brakes very hard for no reason, making it almost impossible for the driver behind to avoid crashing into the back of them.

A claim is then made against the innocent driver, for compensation for false or exaggerated injuries to people allegedly sat in the criminal's car during the accident.

What to do if involved in an accident

Tell us as soon as possible if you're suspicious about the accident.
Make sure you get the full contact details for the other driver (known as the third party) including their land line telephone number and insurance details.
Write down the vehicle make, model and registration number.
Accurately record the damage caused by the accident to all of the vehicles involved and any other damage to the vehicles that was already there before the accident.
Get the names of any passengers in the vehicle. If possible make a note of what they look like, where they were sitting when the incident happened and any injuries they appear to have.
Get the names and addresses of any independent witnesses and check for any CCTV or dashcam footage which may help prove what happened.
Take photographs or a video of the scene of the accident if it's safe to do so.
Observe the driver and passengers' behaviour, for example are they overly friendly, aggressive or impatient?
Observe how the driver deals with you. Did they read from a document or hand you a document with their details already recorded on. Keep safe any documents handed to you as these may assist the investigation of the claim.
Note if there was anything suspicious about the accident, for example did the driver brake suddenly for no apparent reason?
Report any suspected fraud via the Insurance Fraud Bureau (IFB) Cheatline.

Policy and claims fronting

Fronting is when a driver says they're the main driver, even though they're not. This is so they can reduce the price of an insurance policy. For example, if a parent puts themself as the main driver on their newly qualified child's policy. Even through the child is actually the main user a car.

This is illegal and it could invalidate your insurance and your claim being rejected and it may result in you or the main driver in court.

Let's talk about what we do when it comes to fraud...

What do we do when we find fraud?

When we find fraud, we’ll work with anti-fraud and credit reference agencies. We’ll share details with the Police and other law enforcement agencies, and assist with prosecutions. The claim or policy will be refused or cancelled and we may also cancel any existing policies a person has with us, sometimes keeping any premium that has been paid. As with any fraud, as soon as it’s highlighted we’ll act quickly to investigate the matter.

If an employee has been involved in any fraudulent activity, they will be dismissed and may also be prosecuted. Their details can also be added to anti-fraud databases.

We have a regulatory obligation to prevent fraud, so the personal information we collected from our customers is shared with fraud prevention agencies who’ll use it to prevent fraud and money laundering, and to verify a person’s identity. If fraud is detected, people can be refused certain services, finance or employment.

It’s not just insurance fraud that we want to stop. We’re aware of many scams that can affect our customers and other members of the public, which is why we share the details of them to help you prevent yourself being caught out. You’ll find details of all the latest scams in our cyberspace hub.

How could bribery effect an insurance company like LV=?

It’s well known that there are people willing to pay or make threats in order to collect personal data. This could be names and addresses or claims and policy details.

LV= has strict internal controls in place to prevent this happening. All of our suppliers are fully vetted and enter into a strict process before any contracts are signed. When bribery or inducements are offered it can lead to an uneven playing field for suppliers or intermediaries. This results in the business and customers not getting the best deal. None of this is desirable and it can directly undermine our integrity and affect our reputation and relationship with our suppliers, partners, and other organisations that are important to us, as well as our customers and stakeholders.

Transparency in procurement and its procedures are really important to us and if any form of bribery or corruption was found it would be fully investigated and dealt with accordingly.

How do we use and store your details?

We take the responsibility for the security and management of your personal information seriously, so we invest in the systems and processes which collect, use, share, and store your information. The methods we use meet both the regulatory and our own high standards.

When it comes to preventing fraud, we have to comply with legal and regulatory obligations, so a person’s details are checked against details held in certain databases.Any details we hold on file are subject to strict regulation and are fully protected. We only use your information for the purpose for which it was given to us. LV= can be subject to very heavy fines and severe reputational damage if it’s found by the regulator that we didn’t handle your information correctly.

You can read more about this in the Data Protection section on our website.

How to avoid becoming a victim of financial crime

While financial crime comes in many different forms, it's important to protect yourself as best you can
To make sure you don't get caught out, you need to be prepared to spot the signs of fraud and cyber-crime to keep you and your money safe
Being a victim of a cyber-attack has many implications, so staying secure online is essential to protecting your personal identity and finances
Take a look at our Cyber Crime hub to find out how to stay safe online

How can you report fraud?

If you have information to suggest that a person has or is attempting to commit insurance fraud against LV= or any other insurer, please let us know by telling CheatLine online or calling them on 0800 422 0421.

If you don’t want to give your details, that’s okay, you can do it anonymously. They’ll then pass the details to us so we can look into it further.