New Zealand’s Insurance Fraud Detection Techniques Under Scrutiny: Survey Reveals Alarming Lack of Knowledge Among Kiwis

Understanding Insurance Fraud in New Zealand

A recent survey conducted by the Insurance Council of New Zealand’s Insurance Fraud Bureau (IFB) has shed light on the alarming lack of understanding among New Zealanders about insurance fraud and its consequences. The findings suggest that a significant number of people do not comprehend the serious implications of committing insurance fraud, which can have far-reaching effects on all policyholders.

Key Findings

88% of respondents do not understand what constitutes insurance fraud, representing a mere 3% improvement from last year’s results.
Six out of ten individuals do not grasp the consequences of committing insurance fraud, including declined claims, fines, and even criminal convictions.
Only two out of ten respondents were aware that having a claim declined is not the sole action an insurer may take in response to fraudulent activity.
Less than half of those surveyed (57%) recognized that they could face criminal charges for committing insurance fraud.

Demographic Analysis

Males tend to have a better understanding of insurance fraud compared to females (17% versus 7%).
Rural areas exhibit higher levels of knowledge than urban areas (20% versus 11%).

Impact on Policyholders

46% of respondents expressed concern about the effects of insurance fraud.
The majority of those surveyed (69%) believe that insurance fraud leads to higher premiums, while seven out of ten agree it results in longer approval times for genuine claims.

Estimated Cost of Insurance Fraud

Six out of ten respondents believed the annual cost is approximately $70 million. However, industry estimates suggest the true cost could be as high as $739 million.

Quotes from Yvonne Wynyard, IFB Manager

“While the figures are still concerning, it’s pleasing to see small improvements being made by our focused education efforts,” she said. “The sad reality of insurance fraud is that it’s a cost covered by all policyholders. Improving this understanding will continue to be a key focus for IFB in our educational programme for the year ahead.”

Conclusion

As the IFB continues its mission to educate Kiwis about insurance fraud, these findings highlight the urgent need for increased awareness and understanding among New Zealanders. The estimated cost of insurance fraud remains a significant issue, and it is crucial that policyholders are educated on the implications of committing insurance fraud to prevent further financial losses.