Travel insurance will no longer be an 'easy target' for fraudsters
There is a growing concern that fraud in the travel insurance sector is rising. It’s the opinion of some in the industry that a clampdown on whiplash claims may result in fraudsters being forced to find new avenues to exploit. This paints a worrying picture.
In January 2016 the Insurance Fraud Taskforce (IFT) issued its Final Report, which outlined the need for the industry to work together to improve the quality and quantity of data available in fraud prevention databases and data sharing schemes. As well as increasing the membership of existing anti-fraud schemes and databases, adding additional product-lines to these databases was also recommended in the report.
Currently, the Claims and Underwriting Exchange (CUE), managed by MIB, acts as a central database for motor, home and personal injury claims. On receiving feedback from the industry, there was shown to be a strong desire for travel insurance claims to be the next addition to the CUE database. Additionally, that the system should be built so that it could be used as a template for other insurance products going forward, in order to help combat fraud across the whole industry.
The MIB Roadmap sets out the programme of developments across data services for the insurance industry. It includes the creation of CUE Travel and outlines the overarching goals of the anti-fraud schemes and databases:
- Accurate pricing
- Better customer experience and
- Combatting fraud.
CUE Travel is currently being built in two phases: phase one involves the build of a functional database and phase two includes additional enhancements, such as the ability to view claims across multiple-products thereby increasing the industry’s insight into fraud across product lines. Phase one development is currently underway and the CUE Travel database is on track to be available to insurers and delegated authorities later this year.
If you are interested in finding out more about the CUE Travel database, please do not hesitate to contact the CUE Account Managers by email on CUETravel@mib.org.uk