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Leonard Ncube Victoria Falls Reporter
THE insurance sector could be losing millions of dollars to fraud with indications that 40 percent of claims made are not genuine.
Grace Muradzikwa, who took over the helm of the Association of Insurance and Reinsurers of Developing Countries at the end of a regional congress in Victoria Falls on Tuesday, said fraudulent elements had crept into the sector and needed to be weeded out.
She said close cooperation with the police and the judiciary was critical in bringing culprits to book and restoring sanity in the insurance field.
“We notice that our challenges are similar across the board. These are; new capital requirements, climate change and fraud among others.
“About 40 percent of claims made are fraudulent and the most common ones are on motor insurance, fake death certificates to claim money and medical insurance where a family uses a single medical aid card,” said Muradzikwa.
She said the conference resolved that any offenders be prosecuted.
“We came to a resolution that it’s important that anyone involved in any level of fraud be prosecuted. Insurance fraud takes many forms and we need support from all partners to fight this,” added Muradzikwa.
The new president said her task would be to fight graft in the sector and increase membership in Africa.
“I respect the honour you have bestowed on me and call upon for your support as you may be aware that the success of any international organisation is best measured by the support of its members,” she said.
“I promise to do very well and achieve the goals of the organisation. This post means a lot to me but means Zimbabwe will now carry the continent in terms of the insurance sector.
“By giving it to us they want Africa to increase in terms of members and that’s exactly what we will do.”
Muradzikwa, who is Nicoz Diamond boss and chairperson of the local chapter of AISADC, was elected chair of the international insurance body taking over from Dr Jagarg Alwis of Sri Lanka.
She leads a 15-member executive board of trustees tasked with steering the sector until September next year when Antonio Lucas of Seychelles will take over.
The 18th Insurance congress of developing countries was the first to be hosted by Southern Africa.
The meeting began on Sunday in Victoria Falls and ended on Tuesday under the theme: “Insurance Trends, Opportunities and Challenges in Developing Economies”.
The organisation has a membership of about 50 countries and support institutions from Africa, Asia and Latin America.
Online Reporter