Law firm BLM has developed a fraud tool to help insurers and claim managers identify questionable claims for property fire damage. BLM said the tool flags common fraud markers such as the insured refusing an inspection, or remedial work already being completed.

John O’Shea, partner and head of property damage and recovery at BLM, said: “Whether fires have been started deliberately or losses have been exaggerated, there are many potential fraud indicators insurers and claims managers need to watch out for. This new tool brings all of the tell-tale signs together to help insurers identify where insurance fraud might be present.

“If two or more of the indicators apply to a claim we recommend fully profiling and assessing that risk through a rigorous due diligence process. This will help ensure that honest policyholders are paid quickly, whilst bespoke investigations are carried out where cases warrant further validation.

“The number and cost of claims are rising, and are extremely expensive for insurers. We need to work together to tackle fraudulent claims and prevent the rising levels of falsified and exaggerated fire claims.”

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