This week is Fraud Awareness Week (17-23 November) and the Insurance Council of New Zealand is urging financial advisers to talk to their clients about insurance fraud.
“We need your help to get the message out,” says ICNZ Chief Executive, Tim Grafton.
“Talk to your clients and explain to them the cost and consequences of insurance fraud. Help them understand that it’s not common and it does have victims – like their mum and their grandad and their neighbour.”
The ICNZ noted the burden that insurance fraud can put on all policyholders but that it can be reduced through care and attention and effective public education.
“Sadly, if you’re paying for insurance, then you’re paying for insurance fraud, with a portion of all policyholder premiums covering claims that have been made through deception, dishonesty and dissimulation,” said Grafton.
“We need your help to get the message out.”
The ICNZ launched the Insurance Fraud Bureau (IFB) in September, which it stated was the country’s first integrated initiative to target insurance fraud through detection and education.
The IFB’s main aim is to educate everyday New Zealanders about what insurance fraud actually is and what engaging in it could mean for policyholders.
“While insurance fraud is illegal in New Zealand it is common to hear people talk about inflating insurance claims or claiming for accidents that didn’t happen,” said Grafton.
“For some people, this is seen as getting what’s owed to them by their insurer. At the other end of the spectrum, insurance fraud can be a means to financing organised crime.”
Advisers can walk their customers through what could happen to them if they are caught, with resources to help available on www.ifb.org.nz.
The ICNZ represents general insurers in New Zealand.