Aviva detects record £230m in bogus insurance claims as use of AI rises

Aviva detected a record £233m in suspect insurance claims in 2025, with fraudsters using artificial intelligence to fabricate car accident scenes and inflate damage, the insurer reported. The British multinational insurer, the UK's largest general insurer [2], identified more than 18,400 suspect claims across its brands last year [1]. The figure includes the Direct Line brands Aviva acquired in summer 2025, making it the first year those operations were consolidated into the tally [1]. Motor insurance fraud accounted for more than seven in 10 bogus claims detected within Aviva's UK general insurance business, excluding Direct Line [1]. The value of motor fraud detected rose by 39%, driven by a shift away from staged collisions toward exaggerated claims for vehicle damage, repair costs, credit hire and injury [1]. Fraudsters often cited wider cost pressures as justification, the insurer said [1]. Pete Ward, head of claims counter fraud at Aviva, said: "Fraud isn't a victimless crime – it drives up the cost of insurance for everyone." He added: "We're seeing fraud become more sophisticated, from exaggerated claims to the use of AI-generated documents" [1]. The company reported a growing number of claims supported by AI-generated images and manipulated documents, particularly in motor insurance [1]. In response, Aviva is deploying its own AI tools and advanced analytics, overseen by human staff, to flag suspicious claims faster [1]. Aviva secured 37 years of custodial and suspended sentences in 2025 for the most serious fraud offences across the Aviva and Direct Line brands [1]. In one case, fraudsters deliberately caused a collision to submit inflated injury and temporary replacement vehicle claims worth £470,000. Video evidence showed none of the court witnesses were present at the incident, leading to two sisters being convicted of conspiracy to defraud; one received an immediate prison sentence [1]. Opportunistic fraud within genuine home and travel insurance claims also rose. Home insurance fraud across Aviva's brands increased by 15% in 2025, with customers exaggerating the value of damage, repairs or contents [1]. The insurer rejects entire claims once fraud is uncovered [1]. Aviva serves about 25.2 million customers across its core markets of the United Kingdom, Ireland and Canada, where it is the second-largest general insurer [2][3].