Insurance Taskforce Final Report says FCA could step in if comparison sites don’t improve data-sharing with insurers
Aggregators don’t do enough to detect and discourage fraud, according to the Insurance Fraud Taskforce.
And if they don’t improve their anti-fraud efforts, the FCA could step in, it said in its Final Report.
“Aggregators should establish the use of existing fraud databases and data sharing schemes on a consistent basis in order to improve the industry’s ability to detect fraud at the point of quote,” the Taskforce said.
But it added, “Aggregators do not currently share intelligence with insurers on suspicious consumer behaviour as effectively as they could.”
The Task Force called on comparison sites to share data with insurers “to tackle insurance fraud in order to detect suspicious consumer behaviour at the point of quote,” with the effort coordinated by the Insurance Fraud Bureau.
And it threatened that if aggregators don’t voluntarily step up their anti-fraud efforts “within a reasonable time, the FCA should consider whether to intervene in support of their general requirement for firms to combat financial crime”.
According to the Taskforce, some applicants are gaming the online application forms to get cheaper quotes. It said 35% of insured motorists believe it is acceptable to omit or adjust data to reduce their premiums.
Aggregators are “uniquely positioned” to spot application fraud, the Task Force said.
The Final Report accepts that aggregator efforts to stifle fraud should not come at the expense of hampering competition or slowing the shopping around process.