Technology Upgrades Lead To Spike In Insurance Fraud

Insurance fraud spikes whenever a new technology upgrade, such as the release of a new iPhone, occurs, says Dave Ashton, head of the Insurance Council’s Insurance Claims Register. Speaking at the council’s annual conference today, Ashton said when new technology was released, many people want to upgrade their model and therefore claimed their older models had been stolen, lost, or accidentally damaged. The ensuing insurance pay-out funded the new upgrade. Although fraud was often the “elephant in the room” for insurers who don’t want to accuse their policyholders of being dishonest, public attitudes are changing, Ashton said.