The Tunisian Federation of Insurance Companies (FTUSA) is currently working, in collaboration with the authorities concerned, to create an agency to fight against fraud in the sector, particularly in motor insurance, according to the FTUSA president, Mr Habib Ben Hassine.
He said, in an interview with the news agency Tunis Afrique Presse, that the proposed unit aims to provide the legal and technical mechanisms to identify impostors, reveal their methods of operation and prosecute them.
“It is currently difficult to determine with precision the costs of insurance fraud although estimates show that they are between 5% and 10% of compensation amounts,” he said.
According to Mr Ben Hassine, insurance fraud has become more sophisticated and overwhelmed insurance companies.
He also said that the proposed agency will undertake studies and statistics in the area of fraud.
The idea of setting up an anti-insurance fraud agency has been deliberated on since at least 2015. Most fraud cases occur in auto insurance which is also the biggest class of business. In addition, agriculture is one of the sectors most exposed to fraud through false claims.
New projects underway by FTUSA
In addition, Mr Ben Hassine said that new projects are being carried out by the FTUSA, such as the establishment of an information system for the management of accidents. This project aims to digitise exchanges between insurance companies and improve the quality of insurance services in the field of compensation for vehicle damage, which will make it possible to accelerate compensation payouts and reduce delays. The objective is to set up a smartphone app to allow an electronic version of accident reports to be completed by drivers involved in accidents and sent to insurers. This will cut claim processing time.
Life insurance and pension
“Work is also underway to prepare, probably, during the month of May 2021, a study on the role of life insurance in the improvement of the pension system and to submit practical proposals to improve the system, Mr Ben Hassine said.