The CEO of Lion Africa Insurance says that the industry needs to address the
problem of insurance fraud immediately, showing that the
current rate of fraudulent claims in South Africa is even higher than the one
out of ten cases in the United Kingdom.
Insurance Fraud Strikes South Africa
Over 2 billion Rand is lost to fraud
Lion Of Africa
Lion Of Africa ceo says something needs to be done urgently to help reduce South Africa's insurance fraud.
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Adam Samie says that the average consumer is left to pay the price of increased insurance fraud in the South African industry. "In the current
economic climate, any further increases in fraudulent claims will present even
more unfortunate and negative predicaments for honest consumers who will
ultimately be bearing the brunt as a result of higher premiums implemented by
insurers in an effort to recoup their losses," he said.
It is hoped that the newly formed Insurance Crime Bureau will be able to
urgently address the problem of insurance fraud in South Africa. Samie, who also
chairs the South African Insurance Association (SAIA) said: "With the likelihood
of insurance premium increases already being high, the industry at large needs
to come together, share information and act fast in order to safeguard and
protect our consumers."
Criminals who are caught by the Insurance Crime Bureau will be reported
immediately to the relevant law authorities, effectively creating a determent
for those considering insurance fraud.
Samie said that by abusing the insurance system, fraudsters are in effect
making the entire society suffer for their actions. "The purpose of insurance is
to create structures where the masses have access to sound recourse to protect
their wealth and livelihoods against the consequences of unforeseen
circumstances," he said. "These criminals are defying this basic truism by
creating a corrupt situation where both the insurer and the consumer, and thus
society at large, will suffer harm."
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