Stakeholders in the insurance industry have been urged to embrace more innovative ways on how to combat fraud that has become prevalent in the insurance sector.
This was revealed during the 08thAfrica Insurance and Reinsurance Conference that brought various stakeholders drawn from across Africa to deliberate on issues affecting the insurance industry on the continent.
Speaking during the forum, Liberty Life Managing Director Mr. Abel Munda noted that the prevalence of fraud in the industry is a cause for alarm that requires concerted efforts in order to win this war.
“Insurance sector players need to come to the realization that fraudsters are always on the look-out to hit on institutions when you are at your weakest point. It is therefore imperative that as business leaders, we put in place all the necessary measures that will ultimately guarantee the security of our information”, Mr. Munda said.
This comes even as the 2018 Global Economic Crime and Fraud Survey conducted by consulting firm PwC noted that incidences of economic crimes rose from sixty one percent in 2016 to seventy five percent in 2017. According to the PwC report, 37 percent of Kenyan companies have experienced client driven fraud, with customers tasking organizations to cut corners.
Not only has the threat of economic crime intensified in recent years, the rules and expectations of all stakeholders – from regulators and the public to social media and employees – have also changed,
irrevocably. Today, transparency and adherence to the rule of law are more critical than they have ever been.
Understanding this principle gives a business the opportunity to get ahead of fast-moving events, and to demonstrate to both internal and external stakeholders that it is on top of the issues. Not only
are there considerable reputational benefits to ‘owning’ transparency, in an atmosphere of zero-tolerance, doing so can actually enhance the job
security of senior management – while attracting the next generation of leaders to the organisation.