Insurance Fraud Detection Techniques Launched in New Zealand
The Insurance Council of New Zealand (ICNZ) has launched the Insurance Fraud Bureau (IFB), a new initiative aimed at combating insurance fraud and educating the public about its prevalence.
Combating “Victimless Crime”
Speaking at a press conference in Wellington, ICNZ chief executive Tim Grafton emphasized that insurance fraud is often perceived as a “victimless crime” by policyholders. However, it can range from opportunistic exaggeration of claims to organized arson or theft. Grafton noted that while there is no solid data on New Zealand’s levels of insurance fraud, estimates suggest it could be costing around $614 million annually.
The Insurance Fraud Bureau (IFB)
The IFB’s network will cover over 95% of New Zealand’s general insurance sector and aims to provide a central point of contact for all insurance fraud issues. The organization will gather hard data on the prevalence, cost, and patterns of insurance fraud in New Zealand, as well as educate the public about its impact.
Key Features
- Provide a central point of contact for all insurance fraud issues
- Gather hard data on the prevalence, cost, and patterns of insurance fraud in New Zealand
- Educate the public about the impact of insurance fraud
UK-established Insurance Fraud Bureau as Model
The UK-established Insurance Fraud Bureau has been cited as an effective model for reducing fraud. ICNZ is hoping to achieve similar results through the IFB’s efforts.
Appointing a Manager
Yvonne Wynyard, the Insurance Claims Register (ICR) manager, has been appointed to manage the new initiative.
Launch and White Paper
The IFB was launched alongside a fraud white paper, which aims to educate the public about the impact of insurance fraud.
Prevention is Key
Grafton emphasized that insurance fraud is not a “victimless crime,” as it ultimately affects everyone through increased premiums. He urged policyholders to report suspected insurance fraud and praised the IFB’s hotline as a vital tool in detecting and preventing such crimes.
Goal
The ICNZ hopes to see a 10% reduction in insurance fraud within 12 months through the IFB’s efforts.