Morocco: Insurers work to improve anti-fraud system
Source: Middle East Insurance Review | Jan 2020
In the wake of increased losses, players in the insurance sector in Morocco are acting to improve their system of combatting fraud.
This initiative has been announced since 2018. The most visible changes since are observed in express compensation centres. Since the beginning of 2019, motor underwriters have been reporting a longer claim compensation period from 10 to 15 days, according to a report by Insurance Comparator.
Inspections have become the rule, and controls are increasing as compensation procedures are reinforced at several levels. For example, the examinations required under the Direct Compensation Agreement (CID) were reviewed last January.
This initiative is complemented by the establishment of a database that helps to flag fraudulent claims. The database is searchable by insurers.
In addition, intermediaries are now notified whenever a customer takes out a new motor policy, thanks in particular to a multi-insurance detection tool.
But according to experts, insurers can further improve their practices to identify and manage risks proactively. To do this, data must be both complete and qualitative.
Insurers, for the most part, are restricting the access to compensation through express reimbursement centres. It has been recognised that damage reports sent to these centres are contributing to the increase in claims. The centres were opened with the intention of shortening the claim settlement period and simplify related procedures. Compensation is made between 12 hours and 48 hours on average of a claim being received.
Experts also urge insurers to develop a programme to manage costs. For example, insurers should control not only the amounts of claims, but also expenses related to spare part replacement and labour for repairs. In addition, fraudsters have to be blacklisted. M