Finnish insurance companies are set to step up their efforts to combat a phenomenon known within the industry as the iPhone spike, a surge in insurance claims related to old versions of the smartphone coinciding with the release of a new iPhone.
Finance Finland (FFI) on Wednesday reported that insurance companies will begin to ask telecommunications operators to lock smartphones for which a reimbursement has been granted.
Smartphones can be locked by means of the international mobile equipment identity (IMEI) number.
Risto Karhunen, the director of security and crime prevention at FFI, tells that the majority of smartphone-related insurance claims are naturally genuine. Some of the claimants, however, continue to use or re-sell their smartphone after being reimbursed by their insurance policy provider.
“Not everyone is unfortunately worthy of our trust. People use groundless insurance payments to renew their phones, and the ones paying for the fun are other insurance holders,” he says in a press release from FFI.
The Apple iPhone X hit the shelves in Finland in November, prompting insurance companies to prepare for yet another spike in smartphone-related claims.
Karhunen says the phenomenon is known also in other countries. The Telegraph, for example, has reported that iPhone-related insurance claims typically spike by 50 per cent during the month in which a new model hit the shelves, with fraudulent claims accounting for roughly 40 per cent of the claims.
Aleksi Teivainen – HT
Photo: Justin Sullivan – AFP/Lehtikuva
Source: Uusi Suomi