Expert property claims team at Zurich UK and insurance risk and commercial law firm, BLM have collaborated to create a best practice guide for fellow professionals on how to detect and fight fraud related to escape of water (EOW) claims.
At a glance
Zurich and law firm BLM launch industry guide to help fight escape of water fraud
Escape of Water costs the insurance industry £2.5m everyday
This new guide is designed to help spot potential fraud in escape of water claims
The guide outlines the scale of the problem, according to ABI data, stating that its members pay out approximately £2.5m every day on EOW claims. The guide is designed to highlight the key fraud indicators that the industry should consider when dealing with reported EOW damage to enable early detection of fraudulent claims. These include questions that loss adjusters and insurers ask and factors that they should be alert to during investigation.
Paul Redington, the (co) author of the guide and Regional Major Loss Property Claims Manager at Zurich, said: “The overwhelming majority of claims we receive are perfectly genuine. However, over the last few years we have been detecting an increasing volume of dishonest escape of water-related notifications. When we look at the staggering numbers collected by the ABI in terms of the scale and the cost of the EOW problem, it is important that we collaborate as an industry and use our collective expertise to stop as many fraudulent claims as we can to protect our genuine and honest customers.
“We have worked with BLM to produce this guide with the hope that it will help fellow claims professionals, loss adjusters and intermediaries to spot the warning signs early on in the process. It looks to provide guidance in what questions to ask when dealing with EOW claims, so as to allow genuine claimants to receive the compensation they deserve and stop the dishonest ones in their tracks.”
John O’Shea, partner at BLM who worked with Paul Redington to produce this guide added: “Fraudulent EOW claims can inherently be more difficult to detect. However, by bringing together our property and fraud experts, technology, advanced analytics and intelligence resources we are able to offer insight and assistance to both aid prevention and identification of such risks for our clients. We continue to collaborate with the industry on these matters and to help our clients protect themselves and their innocent policyholders from the implications of fraud.”
To download the handling guide, please click here.