Are we really fighting fraud?

Do fraudulent syndicates and clients use insurance companies as cash cows, particularly during times of economic decline? Do insurance brokers and insurers take enough time to focus on claims, ensuring that they are authentic and not inflated?

It is reported that insurance fraud costs short-term insurance companies billions in annual income, with documented figures ranging between R4 billion and R5 billion per year. These numbers increase annually, impacted significantly by downturns in the economy. However, this could lead to criminal charges, the cancellation of an insurance contract and a decision that could make it virtually impossible to obtain future insurance.

Fraudulent claims take many forms

Insurance plays a vital role in any economy, as it ensures the livelihood of organisations and people by offering financial protection.

The eradication of fraud, therefore, requires the focus and energy of all stakeholders in order to expose those who seek to undermine the true value and purpose of insurers. Insurance companies are always looking for innovative ways to combat fraud. The use of technology allows insurance companies to identify patterns and match specific details, enabling the early detection of fraud.

Customers need to understand that fraud is a catalyst for premium increases and that reducing or eliminating fraud will assist in bringing about stability and maintenance of premiums.