Aviva detects record £230m in bogus insurance claims as use of AI rises
Aviva said it found 18,400 suspect claims worth £233m in 2025, as fraudsters used AI to fake scenes and documents.
Intelligence analysis by GPT-5.4 Mini
Aviva says bogus claims hit a record level last year, with AI making it easier to fake accident images and paperwork. The insurer is responding with its own AI tools and human review to spot suspicious claims faster.
Aviva says some people tried to cheat on insurance by faking car crashes and damage, sometimes with computer-made pictures and papers. It is like drawing a fake receipt to get extra pocket money, except the bill ends up being paid by everyone.
Analysis
What Aviva found
Aviva said it identified more than 18,400 suspect claims across its brands in 2025, with a combined value of £233m. That was a record for the insurer, although it was also the first year it included the Direct Line brands it bought last summer.
How fraud is changing
Pete Ward, Aviva’s head of claims counter fraud, said fraud “isn’t a victimless crime” because it pushes up insurance costs for everyone. He said fraud is becoming more sophisticated, moving from inflated claims to the use of AI-generated documents. The company also said scammers are using AI tools to fabricate accident scenes and manipulate damage images, especially in motor insurance.
Where the claims are coming from
In Aviva’s UK general insurance business, excluding the acquired Direct Line brands, motor insurance made up most bogus claims. The insurer said fraudsters are moving away from staged collisions and toward exaggerated claims for vehicle damage, repair costs, credit hire and injury, often citing wider cost pressures.
Wider pattern
Aviva also reported a rise in opportunistic fraud within genuine home and travel claims. Home insurance fraud among its brands rose 15% in 2025, with customers exaggerating the value of damage, repairs or contents. The company said it uses AI tools and advanced analytics, supervised by humans, to speed up the detection of suspicious claims. It also said 37 years of custodial and suspended sentences were secured in 2025 for serious fraud offences across Aviva and Direct Line brands.
Key points
- Aviva said it detected 18,400 suspect claims worth £233m in 2025, a record for the insurer.
- Fraudsters are increasingly using AI to fake accident scenes, damage photos and supporting documents.
- Motor insurance made up most of the bogus claims, with fraud shifting toward exaggerated damage and injury claims.
- Aviva says it is using its own AI tools and analytics, supervised by humans, to flag suspicious claims faster.
- The company also reported more opportunistic fraud in genuine home and travel claims.
Aviva says it is already using AI tools and advanced analytics, with human oversight, to spot suspicious claims faster. If those systems work well, insurers may be able to catch more fraud early and limit the amount that gets passed on to honest customers.
The article suggests fraudsters are adapting quickly, using AI-generated images and documents to make claims look more believable. If that keeps improving, insurers may face higher losses, more rejected claims disputes, and continued pressure on insurance prices.
