"Now, in light of upcoming government reforms to whiplash claims, it is imperative that hard-learned lessons from the motor arena are translated (as far as is possible) with urgency to other casualty insurance lines. We have seen already examples of organised fraudsters moving into other areas to test systems, processes, checks and balances of other insurance lines. Organised fraud can take the form of complex claims inflation and damages shift."
Clyde & Co January 2020
Though there has also been a tendency, particularly amongst CMCs, to seek other injuries to add to the classic whiplash and so bring the claims settlement higher.
Professional fraudster's stock-in-trade is to stay one stay ahead of the latest algorithm which is why is is best to combine technology and human intuition in the best fraud detection solutions.
The truth is often hidden in obtuse and changing patterns that a grizzled fraud investigator augmented with technology can sniff out.
While there have been numerous discussions in the industry regarding claims inflation and damages shift for several years now, little hard data has been gathered about how these are manifesting in claims lines outside motor. In order to fight these issues, we expect that insurers and defendant representatives will move away from the traditional anecdotal evidence method of addressing these concerns toward a more data-driven approach.
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