Large loss claims pose significant risks for UK insurers – financially and reputationally.
Insurers and their panel solicitors often turn to surveillance to support investigations and protect against false claims.
When used well, it helps detect fraud and resolve the most complex cases with confidence. But it’s not without its challenges; when navigated poorly, insurers/solicitors run the risk of damaging their reputation.
Let’s explore where surveillance fits in large loss claims work and how to use it responsibly, so you can uncover the truth without compromising trust.
What is surveillance in insurance?
Surveillance in insurance refers to the monitoring of claimants through various methods to assess the validity of their claims.
Common techniques include:
- Covert physical surveillance
- Social media monitoring
- Routine background checks
- Digital footprint analysis
These methods are particularly relevant in personal injury, sickness, property damage and business interruption claims, where the stakes are high and the potential for fraud is significant.
Doing right by people
When used responsibly, surveillance helps protect genuine claimants and challenges those trying to take advantage of the system.
Here’s where it adds value:
Spotting potential fraud
In 2023, insurers detected £1.1 billion in fraudulent claims – £586 million of that was related to property and casualty insurance (ABI). Surveillance helps identify behaviour that doesn’t match up, giving insurers the evidence they need to act.
Avoiding unnecessary costs
Challenging exaggerated claims protects resources. Insurers can reduce excessive payouts, helping to keep premiums fair for the people who are entitled to support.
Backing your position
Clear evidence can help in court or during settlement talks. It gives insurers the confidence to challenge inflated claims and stand by their assessments.
Supporting genuine cases
It can also help confirm legitimate claims, supporting fair outcomes and timely resolutions.
Incorrect surveillance causes more harm than good
Use surveillance carelessly, and the damage can be hard to undo. In fact, it risks undermining the very trust it’s supposed to protect.
Here’s what can go wrong:
Crossing the legal line
Surveillance must comply with UK GDPR, the Human Rights Act 1998 and the Regulation of Investigatory Powers Act 2000. If it doesn’t, insurers face legal action, regulatory penalties and reputational damage. Fines for serious GDPR breaches can reach up to £17.5 million, or 4% of global turnover (ICO).
Ethical concerns
Surveillance can be perceived as intrusive, especially if conducted covertly. Even if the intention is right, it can impact the trust of those with genuine claims.
Wasting valuable time and money
Surveillance isn’t cheap. Hiring investigators and acquiring digital tools requires time and may not be financially proportionate to the claim. There’s also no guarantee it will uncover fraud, draining resources that could be better spent elsewhere.
Getting it wrong
It’s easy to take surveillance data out of context. An individual walking to their car may still be in pain.
It’s important to recognise that activities in one moment don’t tell the full story. Without careful interpretation, even good evidence can be misleading.
Surveillance in action
Done well, surveillance helps protect insurers from fraud, but can also assist in valuing true claims.
Here’s how it’s working across the industry:
Catching dishonest claims
Take this recent example: a complex injury case that involved a claimant allegedly left “near-totally immobilised” after being struck while cycling. Our surveillance and open-source research revealed sufficient evidence contradicting her claims. We showed the claimant continuing to work and carry out daily duties which, alongside medical evidence, helped to prove fundamental dishonesty at the heart of her case.
The results? “The [damages] and cost savings were significant” – showcasing how targeted and carefully handled surveillance can protect the industry from dishonesty.
Social media monitoring
A claimant seeking compensation for psychological trauma was actively promoting a wellness business on social media. Their public activity undermined the credibility of their claim.
Backing up forensic investigations
In a £500,000 commercial fire case, surveillance was used to verify timelines. Investigators combined video and metadata analysis to show inconsistencies, leading to a partial denial of the claim.
Collaboration between industries
The Insurance Fraud Bureau (IFB) and City of London Police’s Insurance Fraud Enforcement Department (IFED) work closely to support insurers in using surveillance responsibly, especially in large or complex cases. This collaboration helps to set clear standards, protect claimant rights and build a fairer, more accountable industry.
Pressure to act and get it right
New regulation is placing more responsibility on insurers to prevent fraud.
The Economic Crime and Corporate Transparency Act 2023 introduced a new offence – failure to prevent fraud (GOV). It means insurers must show they’re actively working to detect and stop fraudulent activity.
At the same time, the Insurance Sector Fraud Charter calls for collaboration between insurers, regulators and law enforcement, aiming to improve detection while keeping ethical standards high.
Using surveillance with care and purpose
Surveillance is part of a wider investigation, and it therefore needs to be handled sensitively.
Insurers must:
- Follow the law – every activity must comply with UK surveillance and data protection regulations
- Stay proportionate – only use surveillance when there’s a clear and responsible basis for doing so
- Look at the full picture – footage alone doesn’t prove anything. It should support other evidence, not replace it
Protecting trust while uncovering the truth
Surveillance can play a crucial role in large loss investigations.
When used carefully, it helps insurers and solicitors make confident decisions based on evidence, not assumption. It can confirm concerns, challenge inconsistencies and support fair outcomes for everyone involved.
But there’s a fine line between what’s useful and risky. Even when used with the best intentions, one misstep can undermine trust and put the investigation on the back foot.
That’s why experience matters. We work closely with insurers and solicitors to make sure surveillance supports their investigations. It starts with clear intent and adheres to best practices along with innovative techniques where needed.
We help you stay in control throughout, so you can protect your reputation and reach the right outcome.