Protect yourself and your business against Commercial Insurance Fraud
Posted on 15th November 2023 at 14:14
According to Insurance Age “Ten people have been arrested across the country, and 18 vehicles seized during a two-week police operation to tackle commercial insurance fraud. During the operation, a former insurance broker was charged with 39 counts of fraud by false representation, and one count of money laundering. Gary Whipps, 31, of Thundersley Church Road, Benfleet, Essex, is due to appear at Chelmsford Magistrates Court on 1 December 2023.
People who set themselves up as commercial ghost brokers leave drivers who believe they have bought a legitimate insurance policy uninsured. Over the past 12 months, ghost broking has been repeatedly flagged as a problem affecting the insurance sector. In May, LV revealed a 143% rise in its ghost broker referrals into IFED, measured year-on-year between 2021 to 2022. In November 2022, Aviva confirmed that ghost broking made up 15% of all policy fraud.”
So how do you protect your business against buying from a ‘Ghost Broker’?
- ALWAYS check the FCA Register using the Firm Reference Number here https://register.fca.org.uk/s/ to ensure the firm you are speaking with firstly exists and secondly has the correct permissions to sell you the product you are seeking
- We always recommend choosing a BIBA Broker too – The @British Insurance Brokers’ Association has 1,800 Regulated members representing the interests of insurance brokers, intermediaries and their customers by campaigning on all aspects of insurance to ensure the industry is united and working for brokers and customers alike.
Most of all, if it sounds too good to be true, it probably is!
CentriCity Insurance Brokers Ltd are regulated by the Financial Conduct Authority, Firm Reference Number 963828 and proud members of BIBA.
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