Leading the Fight Against Insurance Fraud
20 November 2025
Fraud in the insurance claims industry is a financial crime, and it undermines trust, inflates premiums, and impacts honest policyholders. At Carpenters Group, we have made fraud prevention a cornerstone of our operations, working to protect the integrity of the claims process and support our insurer partners.
Our Commitment to Fraud Prevention
Carpenters Group collaborates closely with insurers to detect and combat fraud at the earliest opportunity. As proud sponsors of the Insurance Times Fraud Charter, we actively participate in shaping industry-wide strategies to tackle this growing challenge. Our membership with the Association of British Insurers (ABI) and the Insurance Fraud Bureau (IFB) reinforces our commitment to sharing intelligence and best practices across the sector.
The Scale of the Problem
Insurance fraud remains a significant issue in the UK. In 2024 alone, detected fraudulent claims were valued at over £1.2 billion, with motor insurance accounting for more than half of these cases. Opportunistic fraud, where genuine claims are exaggerated, continues to rise, alongside organised scams such as “crash for cash” incidents. Alarmingly, the average cost of a fraudulent claim now exceeds £84,000, and one in seven claims is estimated to be fraudulent.
How Carpenters Group Delivers Solutions
Our services combine legal expertise with cutting-edge technology. From white-labelled claims handling to intuitive, system-driven fraud detection, we ensure that every claim is scrutinised for anomalies. Integrated platforms link to industry databases like AskCUEPI, enabling real-time checks and pattern recognition. Case handlers receive specialist training to identify fraud indicators, making them the first line of defence.
From an insurance perspective, our Head of Defence, Kevin Perkins, is an experienced fraud practitioner; he and his team are well versed in dealing with cases involving suspected spurious elements delivering significant savings for clients and punishing those who seek to defraud them.
Kevin himself has given evidence in the High Court leading to the conviction of a fraudulent claimant.
Game-Changing Technology
There is no doubt that tech innovation is transforming the fight against fraud. It is estimated that artificial intelligence and machine learning models now achieve up to 90% accuracy in detecting suspicious claims, reducing false positives and accelerating investigations. Industry-wide initiatives, such as the IFB’s unified fraud technology platform, promise even greater collaboration and efficiency in the years ahead.
Our advice for insurers, brokers, and MGAs to strengthen fraud prevention
Embed Fraud Prevention into Your Strategy
Fraud prevention should not be an afterthought; it must be integrated into your organisation’s risk and compliance framework. Define your fraud risk appetite, set measurable targets, and ensure policies are documented and reviewed regularly. A partner like Carpenters Group brings decades of experience and proven governance structures to help you meet regulatory expectations, including the new “Failure to Prevent Fraud” offence under the Economic Crime and Corporate Transparency Act.
Leverage Advanced Technology for Detection
Fraudsters are increasingly sophisticated, using AI-generated documents and synthetic identities. Insurers need equally advanced tools to stay ahead. Carpenters Group’s integrated systems link to industry databases, enabling real-time fraud checks and pattern recognition. Our tech-driven approach ensures early detection and reduces indemnity spend while maintaining customer trust.
Collaborate Across the Industry
Fraud is a market-wide problem, if one insurer tightens controls, fraudsters simply move elsewhere. Collaboration is key. Carpenters Group actively supports the Insurance Times Fraud Charter and works with bodies like the ABI and IFB to share intelligence and best practices. By partnering with us, you gain access to these networks and benefit from collective insights to tackle organised fraud.
Train and Empower Your Teams
Technology is powerful, but human expertise remains critical. Equip your claims handlers and fraud teams with specialist training to spot red flags and manage cases ethically. Carpenters Group invests heavily in training and provides white-labelled claims handling solutions, ensuring your brand reputation is protected while fraud risks are mitigated.
Adopt a Customer-Centric, Ethical Approach
Fraud prevention must balance vigilance with fairness. Overly aggressive tactics can damage customer relationships and brand trust. Carpenters Group’s ethos is built on integrity and transparency, ensuring suspected fraud cases are handled discreetly and professionally. Our ethical approach safeguards genuine customers while deterring fraudsters, a win for compliance and customer experience.
For more information contact our expert team:
Kevin Perkins, Head of Defence
Comms@carpentersgroup.co.uk
