The Slovenia Times

Insurance fraud increases premiums for everybody

Nekategorizirano

7


The campaign's key message is that insurance fraud represents unethical and unlawful behaviour, leading to higher premiums for honest policyholders. Experts believe that, on average, 10% of all claims at a global level are fraudulent. The Association of British Insurers estimates that the insurance claims fraud detected by insurance companies totals 4% of total gross claims, while undetected cases of fraud total 6% of net premium income. According to Zavarovalnica Triglav, insurance fraud on the Slovene market totals EUR 113 million annually.

This campaign by Zavarovalnica Triglav aims to raise the awareness of the professional and business public as well as policyholders, encouraging them to participate in the prevention of insurance fraud. The key speaker at the conference, Mr James E. Whitaker, former Vice-President and honorary member of the Association of Certified Fraud Examiners (ACFE), presented the international trends and foreign good practice for the prevention.

In 2009, Zavarovalnica Triglav adopted its zero fraud tolerance policy, clearly conveying its commitment to maintaining an active, honest, responsible and lawful approach to business operations. Its fraud management policy is based on three pillars: prevention, detection and investigation of fraud. These three pillars cover all processes and allow fraud management within the broad spectrum of Zavarovalnica Triglav's operations.

In August 2012, Zavarovalnica Triglav and the company Valicon carried out the Study on the Perception and Understanding of the Consequences of Insurance Fraud in order to be better able to understand the perception of insurance fraud. The intention was to examine the perception and behaviour of the general public with regard to insurance fraud. Mr Dejan Jasnič made the following statement: "The study confirmed our belief that fighting insurance fraud starts with awareness raising. This campaign is aimed at decreasing the currently high insurance fraud tolerance level in the long run". The following key findings of the study were highlighted: as much as just under one fourth of respondents believe that insurance fraud would be committed by anybody who was given the opportunity to do so; from 14% to 40% of respondents know somebody who has already committed insurance fraud, most respondents do not seize the opportunity to prevent fraud. For example, among those who have already had the opportunity to prevent an intended insurance fraud, 59% failed to react; 28% have called upon the fraudster not to commit the fraud and only 13% have reported the fraudster to the insurance company,
among various cases of insurance fraud, the most disputable type of fraud is "deliberately caused damage with the intention of abusing insurance policies" (95% of respondents) while only 48% of respondents believe that "inflating the scope of damage" is fraudulent, 71% of respondents believe that fraudsters are persons generally inclined to dishonest behaviour. More than one third of respondents (37%) argue that fraud is committed by people in distress.

Share:

More from Nekategorizirano