Research from Synectics Solutions has found that motor insurance ghost brokers concentrate their efforts on rural postcodes that typically have smaller populations, fewer registered vehicles, lower claim incidences and cheaper premiums.
The research found that in the postcodes worst affected by ghost broking, victims account for up to 20% of all motor insurance policies. This compares to a national average of just 0.2%.
Chris Hallett, head of the special investigations unit at Synectics Solutions, said: “This impersonation fraud trend is acutely concerning for motor insurers. But equally so for victims, for whom the consequences can be devastating. As part of a continued commitment to protecting customers, I encourage every motor insurer to view the data."
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