Insurers’ traditional methods of identifying likely fraudsters are outdated, discriminatory and cost the industry millions of pounds, says specialist fraud solutions provider Absolute Customer Management.Traditionally, insurers use red flagging which covers issues such as race, gender and the area in which a claimant lives. Absolute says this often means that young men, especially those from a deprived area or from an ethnic minority are discriminated against and considered high risk. But the company says its experience in managing cla- ims for insurance companies shows that the average fraudster is far more likely to be a white, middle-aged and middle-class professional exag- gerating a genuine claim or lying about circumstances. Director of customer management Gabrielle Stewart says: “We have found that every section of society has a percentage that will commit insurance fraud. The vast majority of insurance fraud is opportunistic, people exaggerating a genuine claim or lying about circumstances, and often comes from middle aged professionals who are not traditionally thought of as fraudsters.” But Norwich Union spokes-man David Ross says: “Where is Absolute’s evidence? It is absolute nonsense to suggest that we primarily target young men from ethnic minorities or deprived backgrounds. We successfully identify 15,000 fraudulent claims per year and have spent years looking at different triggers that may make people more liable to commit fraud.”
FSA chief executive John Tiner has warned financial companies to stress-test new products against big stock- market falls and check that the products are appro- priate for their target customers to help guard aga- inst misselling. Tiner, speaking at the FSA annual asset management conference in London on Monday this week, said that by incorporating […]
Sesame has appointed Paul Rignall as mortgage product manager, joining from St James’s Place where he was mortgage marketing manager. He replaces Andy Young who left for TBMC in April. Rignall was responsible for mortgage and general insurance at SJP and he previously worked for Zurich. Rignall will be responsible for management and development of […]
Morley has appointed Robert Graham-Brown as a fund manager to its North American equities team. He joins from Threadneedle where he was a US equity fund manager.Graham-Brown will join in October and report to head of North American Equities, Penny Kyle.
Individual fund selection rather than asset allocation is the driver for returns in the current economic climate, according to Jupiter’s multi-manager team.
By Kunal Desai, head of Indian Equities, Neptune A key concern for investors who were looking at India afresh has been the rich valuations and strong prior performance. We view the correction in the market through short-term growth concerns from demonetisation as a terrific entry point for the long-term investor. Investors should not be overly concerned […]
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FCA chief executive Andrew Bailey says he is concerned about the new Priips regulation. Speaking at the London Business School Annual Asset Management Conference yesterday Bailey said: “I want to be clear that I am concerned about Priips, and I know I am not alone.” He added: “It carries a risk that it is leading […]
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