Aviva has reported a record detection of fraudulent insurance claims worth more than £230 million in 2025, as scammers increasingly employ artificial intelligence to fabricate accident scenes, documents, and exaggerate damages. The insurer identified over 18,400 suspect claims across its brands, with a combined value of £233 million. This milestone represents the highest level of fraud detection for the company, though it is the first year including the Direct Line brands acquired last summer.
Fraud trends and AI involvement
Pete Ward, head of claims counter fraud at Aviva, emphasized that fraud is not a victimless crime and drives up insurance costs for everyone. He noted a rise in sophistication, from exaggerated claims to AI-generated documents. Within Aviva's UK general insurance business (excluding Direct Line), motor insurance fraud accounted for the majority of bogus claims, representing over 70% of cases.
Fraudsters have shifted from staged collisions to exaggerating vehicle damage, repair costs, credit hire, and injury claims, often citing broader cost pressures. Consequently, the value of detected motor fraud increased by 39%.
AI-generated imagery and documents
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. In response, Aviva employs AI tools and advanced analytics, overseen by humans, to identify suspicious claims more efficiently.
Serious fraud convictions
In total, 37 years of custodial and suspended sentences were secured in 2025 for the most serious fraud offences across Aviva and Direct Line brands. In one case, fraudsters deliberately caused a collision to claim inflated injury and temporary replacement vehicle costs worth £470,000. Video evidence revealed 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.
Rise in opportunistic fraud
Aviva also detected an increase in opportunistic fraud within genuine home and travel insurance claims. Home insurance fraud 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.
