10% of insurance claims are fraudulent - SAS
Source: Middle East Insurance Review | Sep 2015
Around 10% of insurance claims in the Middle East are fraudulent and only 20% are detected, said Ms Ebru Jouzy, Fraud and AML (Anti Money Laundering) expert, Middle East and Turkey with global business analytics software provider SAS.
“Combating claims fraud is difficult and costly for insurers but not for organised crime rings, which find insurance fraud to be a low-risk, high-return enterprise. With this in mind, it is important for insurance companies to have a defence mechanism that helps them to manage, detect and predict potentially suspicious claims before further losses are incurred,” Ms Jouzy added in a statement.
A Middle East survey by PwC last year revealed that only 5% of fraud were detected by internal audit, with 22% detected by tip-offs and 16% detected by chance, indicating a widespread lack of effective fraud detection methods in the region.