Over the last couple of years, AXA has monitored a sharp rise in
customers who have been sold a policy by an alleged broker who has
inputted false information in order to buy insurance.
Had the correct details been inputted the premium would have been
higher or the driver declined for cover.
Ghost brokers appear to target certain communities who they believe
may find it hard to get insurance, for example students or migrant
groups. They then contact insurance companies directly
and input only selected details, leaving out or changing anything
that might have a negative impact on the quote such as citizenship
or claims history. This leaves the customer with
an invalid policy and the potential for any claims to be
declined.
Over the last year, AXA has had to deal with numerous claims where
"ghost broking" has been evident. And the company has
contacted 1000 customers with policies that appeared suspicious in
order to correct any errors before the motorist finds themselves
footing the bill for an invalid claim.
Steve Gaywood, Head of Counter Fraud at AXA says: "We all know that
car insurance premiums have risen in the last couple of years and
for some motorists insurance is difficult to afford or find.
But it seems that some unscrupulous individuals are using this as a
hook to con people into buying insurance that isn't valid.
"Motor claims can run into hundreds of thousands of pounds and with
one in 10 of us claiming each year. Often the changes made by
ghost brokers don't save much money and can leave motorists
uninsured and liable for huge claim costs."
AXA is urging consumers to check out the validity of their broker.
One suggested resource is the Broker search function located under
the consumer section of the British Insurance Broker's Association
(B.I.B.A) website or go directly to insurers
themselves.
Steve Gaywood concludes "There are plenty of insurers and bona fide
brokers out there who can obtain quotes for motorists who may find
it harder than others to get insurance."
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