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Fraudline
Insurance
Fraudline
Insurance fraud
costs all of us, most particularly the honest consumer. Insurers
have no option but to pass the increased cost of claims on to the
consumer by means of increased premiums.
An association called the Insurance Fraudline aims to combat the
high occurrence of insurance fraud in South Africa.
The short-term insurance industry, represented by the South
African Insurance Institute (SAIA), the long-term insurance
industry, represented by the Life Offices' Association (LOA) and
intermediaries through the South African Financial Services
Intermediaries Association (SAFSIA) are collaborating in
establishing the Insurance Fraudline.
In recent years, the insurance industries have realised that the
impact of insurance fraud was serious. To address fraudulent
behaviour, the Insurance Fraudline was launched. It is
particularly aimed at fraud committed by consumers, service
providers and the employees of insurance companies.
Any member of the public who wishes to report an alleged incident
of fraud or what is perceived as inappropriate behaviour can
contact the Insurance Fraudline free of charge and anonymously.
This information will be received, analysed and passed on to the
relevant industry bodies for investigation and action by their
members.
Traditionally, the local short-term insurance industry has dealt
with fraud simply by rating the risk to cover the increased cost
of claims, says Barry Scott, chief executive officer of SAIA.
"However, in recent years the short-term insurance industry
has realised that fraud was partly responsible for pushing
premiums beyond affordable levels and driving clients away.
Industry sources rate the incidence of short-term insurance fraud
in South Africa around 15% of premiums, costing the industry about
R3 billion per year."
Regarding long-term insurance, fraud is also a significant factor,
says Gerhard Joubert, chief executive director of the LOA.
"LOA-member companies have implemented extensive measures,
including a claims register to combat fraud. Despite having taken
these steps, fraudulent claims detected and solved last year,
amounted to an estimated value of more than R100 million."
Insurance Fraudline contributes significantly towards reducing the
incidence of particularly white-collar crime, while simultaneously
contributing to improving systems of governance and risk
management.
Tip-Offs Anonymous, which manages Insurance Fraudline, is a
partnership between Deloitte & Touche and Brian Adams &
Associates (Pty) Ltd, a professional security risk management and
consulting company in South Africa.
This company is equipped with state of the art technology and is
operated by a team of skilled and experienced professional agents.
The function of Tip-Offs Anonymous is to receive and analyse
information received and then to report their findings to either
SAIA, the LOA or SAFSIA.
Members of the
public who wish to report any alleged insurance fraud or
inappropriate behaviour can contact the Insurance Fraudline on:
- FreeCall
telephone: 0800 25 26 27
- e-mail:
insurance@fraudline.co.za
- FreeCall fax:
0800 00 77 88
- FreePost
address:
Free Post DN298
Umhlanga Rocks, 4380
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