Insurance Fraud Bureau to call for brokers' help

Brokers will be able to take part in and aid a new anti-fraud initiative to help tackle a problem which costs the industry millions of pounds a year.

The initiative, which will be known as the Insurance Fraud Bureau (IFB), will use shared data from insurers and use investigative follow-up, analysis of data and collective experience to help catch fraudsters.

Trevor Bedeman, head of insurance customer data management, Lloyds TSB Insurance, who chairs the initiative, confirmed they would be seeking the aid of brokers once the initiative was up and running with insurers by next spring.

He said: "We need to look into brokers helping the bureau. They are very close to their customers and have the specialist skills that would help the bureau fight fraud more effectively."

The concept behind the IFB is that the industry has massive amounts of data that it can use more effectively, potentially leading to £50m - £200m in savings.

"Organised fraud is well planned and well funded, but the hope is we will be able to work together and fight fraud effectively," explained Mr Bedeman.

"We are just going public with the IFB and are in the process of setting it up. The IFB is currently getting agreements from general insurers and then we will sign contracts."

The IFB will tackle personal lines initially rather than commercial lines as there is a high proportion of fraud; especially in motor.

In addition, the bureau will spend 2006 refining the output of its systems and gaining experience.

Mr Bedeman added: "We are funded and governed by our insurance members - it was initially funded by 20 participants - and the ratio of fraud to funding is good.

"We want to fully realise those benefits. We will also look at how the bureau and its participants will get benefits via individual consultation, which has been planned into the budget.

"Information on fraud has been shared for some time and we are simply using this data more effectively."