Arson patterns

How it works

Insurance arson is a fire set, or arranged, by or for the insured to collect on the policy. It is usually driven by financial pressure, such as a failing business, a property that will not sell, obsolete stock or a vehicle the owner can no longer afford. The fire may be set by the insured or by someone paid to do it.

Preparations are often visible after the fact. Valuable contents or records are removed beforehand, cover is taken out or increased shortly before, and alarms or sprinklers are disabled. Where several fires share a broker, contractor, adjuster or hired fire-setter, losses cluster by area and time beyond what season and building type explain.

Fire destroys much of the evidence, and each claim usually arrives with a fire service report and real damage. Cause-and-origin investigation can establish that a fire was set, but linking it to the insured depends on motive, opportunity and the wider pattern across claims.

Investigation and response

1. 01Hold payment pending an independent cause-and-origin investigation
2. 02Appoint a fire investigator early and secure the scene, debris samples and alarm logs
3. 03Request financial statements, stock records and proof of ownership for the contents claimed
4. 04Interview the insured and witnesses, and refer to SIU and to the fire service or police where the fire was set

Related typologies

• Repeat lossesThe same person, address or asset claiming repeated losses, often across several insurers, more often than the underlying risk explains.
• Inflated contents claimsContents claims padded with items never owned, values above what was paid, or receipts that were altered or fabricated.
• Over-insuranceCover far beyond the insured’s income, means or need, often stacked across several policies or insurers before a claim.
• Phantom vehiclesCover taken out on a vehicle that does not exist or is no longer held by the insured, followed by a theft or total-loss claim.