IFED and Lloyd's Continue to Tackle Fraud Together
Lloyd’s has been a formal sponsor of the City of London Police’s Insurance Fraud Enforcement Department (“IFED”) since September 2013.
Initiated by agreement between the Association of British Insurers and the City of London Police in 2011, IFED is privately-funded by the insurance industry and is singularly devoted to fighting insurance fraud in England and Wales. To date, IFED’s team of 39 investigators and support staff have posted impressive results:
- Arrests: 470
- Voluntary Attendances: 255
- Charges: 135
- Cautions: 140
- Convictions: 81
- Assets restrained: £838,000
- Fraud under investigation >£22 million
IFED investigations cover the full spectrum of insurance fraud: from application to claims, the latter of which accounts for roughly 50% of IFED’s caseload. In one recent prosecution for claims fraud, IFED was successful in obtaining a lengthy suspended sentence for a policyholder who attempted to defraud a Lloyd’s carrier by submitting a false claim for the loss of a diamond engagement ring. IFED also made national headlines in October of 2013 when a nationwide sweep of suspected “ghost brokers” resulted in 22 arrests (including one unfortunate burglar who happened to be robbing the home of a ghost broking suspect when IFED and the “Claim and Shame” TV crew arrived).
High profile cases such as these have enabled IFED to maintain a strong—and consistently positive—media presence. This is intentional: by appearing regularly in the press and by demonstrating firm resolve in tackling insurance fraud, IFED aims to deter crime as much as to combat it when it occurs. Lloyd’s fully supports IFED’s efforts in this regard, as evidenced both by the appointment by every managing agent of a Single Point of Contact (“SPOC”) to work with IFED, but also by a (hopefully growing) number of referrals to IFED made by Lloyd’s underwriters.
As Lloyd’s nears the anniversary of its joining in support of IFED, we encourage the Market to continue supporting IFED, its dedicated staff and its mission.