When it comes to fiction to find lower home insurance rates when using price comparison websites, two out of three UK consumers think the practice is acceptable, according to a recent survey. LexisNexis Risk Solutions…
In addition, about half of the respondents who recently completed home insurance claims were more likely to consider exaggerating or adjusting a future claim in order to receive a higher payout. Those who recently filed lawsuits and saw an increase in premiums are also more likely to believe that it is okay to manipulate information on insurance forms.
According to Neil Slane, senior manager at LexisNexis Risk Solution in the UK and Ireland, as individuals continue to experience financial stress from the pandemic, the temptation to commit fraud is mounting. This may not be a declaration of past claims for a cheaper offer, or an exaggeration of claims for accidental damage or weather conditions.
“Fundamentally, insurers need a deeper understanding of past claims to help inform every part of the customer journey to improve pricing, underwriting and claims handling, and reduce the risk of fraud,” Slane said in a statement.
Part of this behavior may be attributed to the fact that nine out of 10 consumers who have recently filed a claim believe that home insurance companies are trying to avoid making claims, “at least sometimes,” LexisNexis reported.
“Home insurance is a highly competitive business with very little change in premiums over the past seven years,” Slane said. “Insurance companies should differentiate yourself in prices and claimsand to combat a common misconception, highlighted in our research, that they are actively trying to avoid paying claims, at least in some cases. ”