Following the rise in fraudulent claim cases by insurance companies in recent times, a stakeholder has called for several measures to be put in place to arrest this trend.
According to Olumide Ibidapo, managing director/CEO, FBN Insurance Brokers Limited in an interview called on insurance companies to conduct proper due diligence, deploy use of technology, increase awareness and improve risk assessment to mitigate fraudulent claims.
According to insurance companies, some fraudulent clients are filling frivolous claims in cases when they ordinarily would not, and this has been linked to economic difficulties and hardship.
“We have seen some clients file claims in more than one insurance company when they encounter accident, and this amounts to double insurance, one of the industry CEO’s said.
According to the CEO, some clients want to make gain on their claims, most time far above cost of repairs in the case of vehicle accident.
Ibidapo said fraud is a significant problem in the Nigerian insurance industry, and it has a significant impact on insurance companies, policyholders, and the economy as a whole.
Conduct Proper Due Diligence: Insurance companies need to conduct proper due diligence before issuing policies to customers. This involves verifying the identity, financial status, and claims history of the policyholder to identify any potential fraud indicators.
Improve Risk Assessment: Insurance companies can implement advanced risk assessment methods to evaluate the likelihood of fraud by customers. This can include the use of data analytics and artificial intelligence to analyze customer behavior and identify suspicious patterns.
Increase Awareness: Insurance companies can increase awareness among customers about the consequences of fraudulent activities. This can include educating customers on the penalties for fraud and the impact of fraud on the insurance industry and society as a whole.
Use of Technology: Insurance companies can leverage technology to reduce the risk of fraud. Technology can be used to track all transactions, making it difficult to manipulate or falsify data. Smart underwriters can automate the claims process, reducing the potential for human error and fraud.
