The latest analysis from the Insurance Fraud Bureau (IFB) reveals a sobering picture of motor insurance fraud in 2024. As the most frequently targeted insurance product, motor vehicle claims continue to dominate fraud statistics—both in volume and in financial impact.
Scale of the Problem: Fraudulent Claims in 2024
In 2024, there were 698,239 motor vehicle claims lodged across New Zealand. Of these, 79,250 were identified as potentially fraudulent, representing more than 11% of the total motor claims volume. The estimated financial cost of these fraudulent claims reached a staggering $216,772,140.
While the average value of a rejected claim varies, the scale and consistency of these numbers highlight the critical need for strong fraud detection and collaboration across the insurance sector.
Stolen Vehicles and Staged Crashes
Motor vehicle theft continues to be a key focus area. Although many insurers did not provide exact counts of stolen vehicles, ICR (Insurance Claims Register) data recorded 18,865 stolen vehicle claims in 2024 alone. These losses cost insurers approximately $123,032,176.
Using the industry’s average fraud detection rate of 9.58%, it’s estimated that up to $11,798,878 may have been saved by identifying and rejecting fraudulent stolen vehicle claims.
When it comes to staged crashes, the Toyota Hilux emerged as the most frequently involved vehicle in suspected fraudulent collisions. Meanwhile, small vehicles fitted with immobilisers—such as Mazda Demios and Toyota Acquas—remain top targets for thieves.
Looking Back: A Five-Year View of Motor Fraud
Over the past five years, the scale of insurance activity in New Zealand has been immense, with millions of policies underwritten and claims processed across the industry. This period has also offered a valuable window into the patterns and financial impacts of fraudulent behaviour within the motor insurance space. The data collected between 2020 and 2024 paints a clear picture of just how widespread and costly insurance fraud continues to be.
- Roughly 4.8 million claims were presented at a total cost of $14.7 billion
- An estimated 479,873 claims (or 9.87%) were deemed potentially fraudulent
- This equated to an estimated $1.4 billion in fraud savings
These figures underscore how persistent and costly motor insurance fraud remains year after year.
A Drop in Claims—but Fraud Persists
Interestingly, 2024 saw a reduction in the overall number of claims to 960,450—the lowest level since before the COVID-19 pandemic. This follows a spike in 2023, largely driven by significant weather events.
Despite the decrease in total claims, the percentage of fraud remains high. In 2024, the estimated fraud rate was 9.58%, slightly down from 10.82% in 2023 and 11.78% in 2022. Motor vehicle fraud remained the leading fraud category in all years except 2021, when lockdown restrictions significantly reduced vehicle activity.
Final Thoughts
The data from 2024 reinforces what the IFB and its member insurers already know: motor insurance fraud is a significant and ongoing threat. From inflated theft claims to staged crashes and vehicle scams coordinated through online platforms, the tactics continue to evolve—and so must our efforts to detect and prevent them.
The IFB will continue working with insurers to share insights, identify patterns, and hold those responsible for fraudulent activity to account.
If you suspect insurance fraud, report it confidentially at https://ifb.org.nz/report-fraud/