The insurance regulatory authority of Uganda (IRA), has called on all insurance players to come up with anti-fraud laws that will best prevent this cancer from eating up the sector.
This fraud in the sector is alluded the fact that insurance companies have resorted to working individually while competing without sharing useful information.
Speaking at the 44th breakfast engagement peddled at deliberating on evolving insurance market challenges, and how to tackle them, Chief Executive Officer of Insurance Regulatory Authority Alhaji Kaddunabbi Ibrahim Lubega, 10 per cent of the claims paid to policy holders are a result of fraudulent processes which in a way has a negative impact on the whole insurance industry at large.
“We have seen some engineers connive with people to put in values that were damaged and when you further probe, you realize that things are not connecting. It is also very common in medical insurance; someone goes to the medical facility checks for something which did not take them there in the first place. Even within insurance companies themselves, people forge work experience. This is fraud which must be dealt with”, Said Alhaji Kaddunabbi.
Allan Mafabi, the Chairman of the Uganda Insurance Association agrees to this and says, “It is high time we as insurance companies formed a single platform where we bring together our technical people such as those dealing with claims to share useful information. It is very common to find one car being claimed in more than two companies. It is therefore important that we dealt with this issue collectively and that is what we are working on.”
It is here that Alhaji Kadunabi, the IRA CEO encouraged insurance companies to come up with anti-fraud policies that will prevent any cases of fraud. The need to sensitize all insurance industry players on fraud and doing due diligence at the underwriting stage was also emphasized. The use of IT should as well be embraced.