Aviva has uncovered a record-breaking £230 million in fraudulent insurance claims last year, as scammers increasingly turn to artificial intelligence to fabricate accident scenes, documents, and exaggerate damages. The insurer identified more than 18,400 suspect claims across its brands in 2025, with a combined value of £233 million. This marks a record level for the company, though it is the first year that includes the Direct Line brands acquired last summer.
Counter Fraud Efforts
Pete Ward, head of claims counter fraud at Aviva, emphasized that fraud is not a victimless crime, as it drives up insurance costs for everyone. He noted that fraud is becoming more sophisticated, ranging from exaggerated claims to the use of AI-generated documents. In response, Aviva is leveraging AI tools and advanced analytics, overseen by humans, to identify suspicious claims more quickly.
Motor Insurance Fraud Dominates
Looking at Aviva’s UK general insurance business excluding Direct Line brands, motor insurance fraud accounted for the majority of bogus claims detected, representing over 70% of cases. Fraudsters are moving away from staged collisions toward exaggerated claims for vehicle damage, repair costs, credit hire, and injury, often using wider cost pressures as justification. As a result, the value of motor fraud detected rose by 39%.
AI-Generated Fraud on the Rise
The insurer reported a growing number of claims supported by AI-generated images and manipulated documents, particularly in motor insurance. Fraudsters use AI tools to fabricate accident scenes and damage imagery. Aviva is countering this with its own AI systems and advanced analytics, overseen by human experts, to thwart suspicious claims faster.
Criminal Convictions
Aviva stated that in 2025, a total of 37 years of custodial and suspended sentences were secured for the most serious fraud offenses across Aviva and Direct Line brands. In one case, fraudsters deliberately caused a collision to make inflated injury and temporary replacement vehicle claims worth £470,000. Video evidence showed that none of the witnesses in court were present at the incident, leading to two sisters being convicted of conspiracy to defraud, with one receiving an immediate prison sentence.
Opportunistic Fraud in Home and Travel Insurance
The company also detected a rise in opportunistic fraud within genuine home and travel insurance claims. Fraud in home insurance among Aviva’s brands rose by 15% in 2025, where customers exaggerated the value of damage, repairs, or contents. Entire insurance claims are rejected once fraud is uncovered.
