Maxence Bizien has been the director of Alfa for Agence pour la Lutte contre la Fraud l’Assurance (ALFA) since 2018. In an interview with MoneyVox agreement, the expert explains to us how organized crime has stretched its tentacles against car insurance fraud, in particular via the vandalism claims which are increasing in the south of France and Marseille in particular.
Maxence Bizien
Director of the Alfa agency (Agency for the Fight against Insurance Fraud)
The Agency for the Fight against Insurance Fraud (ALFA) was created in 1989 with the aim of develop preventive actions and means of detecting fraudulent claims for insurance companies.
We presented its president, Maxence Bizien, the latest data from the professional association SRA, which confirms that the prices of car repairs are higher in the departments where acts of vandalism are the most numerous.
In a MoneyVox agreement interview, this expert explains how organized crime has stretched its tentacles against auto insurance fraud.
Car insurance: how vandalism fuels fraud and hurts your premium
MoneyVox: How to explain that acts of vandalism are more numerous in certain departments, and that, often, in these same areas, the prices of repairs are higher?
Maxence Bizien: It is true that we see a correlation between the departments where the frequency of acts of vandalism – that is to say intentional damage to the vehicle, different from a burglary – is the strongest and those where the cost of repairs for vandalism is higher national trends. Three departments, Bouches-du-Rhne, Pyrnes-Orientales and Seine-Saint-Denis are in the Top 5 in both categories. Clearly, we are on average four times more likely to have our Marseille car vandalized and On average, policyholders pay for repairs via their insurers twice as much as elsewhere.
Above all, these data corroborate our findings in terms of fraud. Alfa’s member insurers contact us on vandalism cases in these departments because the average costs are higher there.
Car insurance: how vandalism fuels fraud and hurts your premium
What action is Alfa taking in this situation?
MB: We are working on certain garages or networks of garages to better understand how they work. We noticed that they communicate on social networks. It’s really advertising with announcements like: “come to our house, in the event of vandalism we pay the deductible”. came back to say that, in the event of a light impact on a vehicle, make it look like vandalism, free of charge because without deductible. It is a mode of communication concentrated in Marseilles and in les-Bouches-du-Rhne even if we note that it extends in the south of France.
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What we also see is that garages have specialized in repairing vandalism damage. The insured is free to choose his garage and strangely, some choose not to go to approved garages. For what? Because they are offered the franchise, perhaps something else like with windshields where repairers have multiplied the incentive promotions.
This is all the more tempting as the assumption of responsibility for compensation by insurers is rapid. Garages go so far as to offer assignments of debt to policyholders (so that they don’t have to advance the money for reparations editor’s note) to further shorten the delays.
It’s really advertising: “come to our house, in the event of vandalism we pay the deductible”.
Do you have specific examples?
MB: Alfa has found a specificity in the Bouches-du-Rhne: garages located in residential buildings, without any commercial premises, sometimes located on the floors, in the heart of Marseille. The trend of the moment is also traveling garages. When an expertise is organised, the appointments take place in a garage other than the one informed or else in the car park of the company which is to carry out the expertise. In this case the vehicle comes on a truck which tows it.
Once these practices are spotted, how do you intervene?
MB: It is up to the insurers to do this and each insurer responds in its own way. Faced with investigators and experts, the people in charge of suspect garages are becoming more and more virulent, even violent. We are regularly confronted with threats against experts that we do not see in other regions. This attitude reinforces the suspicion of fraud.
We are regularly confronted with threats against experts
Ultimately, these frauds weigh on the premiums of all policyholders. It is impossible to stop these practices?
MB: Alfa’s role is to advise insurers so that they can coordinate for a more effective fight against fraud. But this is a complex subject: we are dealing with organized crime, not just lone amateurs. They know perfectly the workings of insurance to exploit its flaws. Besides, insurance fraud is usually only part of their business. Alfa allows the sharing of information and offers ways to fight, but we are not the police, nor the justice. The complaint must be filed by the insurers concerned.
On the other hand, Alfa is a relay for the police forces, especially when they have to carry out legal requisitions with our members. We facilitate communication between the public and private spheres. We also advise our members on best practices to adopt. We also believe it is important to provide policyholders with more information about these practices and their consequences.Finally, the cost of these frauds is borne by all policyholders who see premiums increase.