Policies that aren’t worth the paper they’re written on

Article Publish Date: Friday 9 March 2018


Fake documents, misrepresentation, cheap motor insurance premiums.  What is the impact of ghost broking on our industry?

Last month, The City of London Police Insurance Fraud Enforcement Department (IFED) launched their #steerclearoffraud media campaign, to warn motorists of the pitfalls of ghost brokers selling them car insurance.  It’s all about how to avoid becoming a victim of ghost broking.

How do ghost brokers operate?

They might operate in several ways. Some examples that we see are:

  • Fake documents that the customers believe are genuine – when no insurance policy has been set up
  • An often significantly misrepresented policy, taking cash payment upfront from the customer then setting up a payment plan – which will subsequently default
  • A commercial motor policy which affords them access to self-administer the Motor Insurance Database, where they can add vehicles at will.

What’s the impact to your business?

Ghost broking has many effects on insurance brokers;

  • Poor risks on your account – potentially impacting the profitability of your accounts
  • Time spent investigating these policies – stopping you from spending time with your genuine customers
  • Credit card chargebacks which can leave you in bad debt situations. 

How can you recognise ghost broking?

  • Multiple policies taken out using the same details such as email address, postcode, mobile number and bank account details
  • Multiple payment attempts using different credit cards
  • Commercial policy with rapid expansion of vehicles and/or an urgency to self-administer their policy.


What should you do?

It’s so important to us that we protect you and your customers. If you have any concerns about fraud-related activity and the impacts it may have on your business, please contact our Fraud Team at consumerfraud_ib@aviva.co.uk. Our team is keen to help you in any way they can. If you have ideas about tackling fraud in our industry, please email theloop@aviva.co.uk.

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