Advisers, Communities Take The Fight To Insurance Crime

Financial and insurance crime is big business in South Africa. To illustrate, investment and life insurance members of the Association for Savings and Investment South Africa (ASISA) detected 8 931 cases of fraud and dishonesty during 2022, preventing around R1.1 billion in potential losses. Almost a third of these cases arose in the life insurance space where fraudulent claims totalling R770.5 million were avoided.

In an exclusive interview with FAnews, Garth de Klerk, CEO of the Insurance Crime Bureau said, insurers were spending millions of Rands on smart systems to detect and prevent fraud, with the key focus being on spotting warning signs in policy administration and policyholder behaviours. “These systems are designed to detect and monitor for individuals who are beneficiaries on multiple policies, or policyhold¬ers taking out cover in a variety of geographical areas, as just two examples,” he said.

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