“GAP claims are an extremely lucrative business for fraudsters”…Donna Emmett discusses rise in GAP fraud

GAP fraud

“GAP claims are an extremely lucrative business for fraudsters”…Donna Emmett discusses rise in GAP fraud

Recently, RGI warned clients of the potential for an increase in fraudulent GAP claims. Our customers are now starting to see these effects firsthand.

GAP Insurers are telling us of their struggles to deal with suspicious claims and their feeling that they have no option but to pay as motor insurers have settled the claim prior to their involvement.  RGI are advising them that they must not be put off and continue to look into and combat insurance fraud.  At RGI we are immediately informing the claimant that they must not expect their claim is settled without the correct validation, just because in their words ‘I didn’t have to do this with my motor insurers, they just paid me out’.

Not only do RGI obtain results for our clients on the GAP insurance side of claims, but also help motor insurers recover their outlay. Unfortunately, we are coming across the odd claims handler who is reluctant to assist as they feel they are being told they are not doing their job properly or have failed to identify fraud; this is not the case! We need them to assist in proving fraud, after all “sharing is caring”—especially when it comes to information they hold. What we want to see is an increase of cooperation between Insurers, outsourced claims handlers and investigation services for the purpose of fighting fraud.

GAP claims are an extremely lucrative business for fraudsters, especially as Insurance companies are still paying these claims without proper validation.  We are now seeing repeat claimants, who look to obtain a pay out every two to four years, not only this but we are seeing the added value of a staged accidents involving injuries.  Our Intelligence team are obtaining fantastic results in establishing links between the claimants and third parties, when statements are given to the contrary.  We are also identifying links to the recovery companies and garages, seeing these claims becoming part of a sophisticated fraud ring.

RGI already have extensive knowledge and experience of dealing with GAP claims and we are vastly increasing our database of suspicious activity and trends.  We envisage that as the cost-of-living crisis increases, so too will fraud.  It will be interesting to see whether these fraudulent claims will continue to rise, or will drivers simply choose to not pay the increase premiums and drive uninsured, either way, claims one way or another could potentially put some Insurers out of business.

We urge insurers to take action now, before this problem gets out of control. Focusing on fraud prevention could help make the difference between profits and losses for your company.

RGI is interested in working with insurers, TPAs and other companies to continue the fight against fraud. If you are interested in learning more about how RGI can help your business, please do not hesitate to contact us.


Donna EmmettAuthor:  Donna Emmett

Associate Director – Desktop Investigations