Technology Aggravates Global Insurance Fraud – Bank Negara Malaysia

MALAYSIA – Bank Negara Malaysia (BNM) deputy governor Datuk Muhammad Ibrahim said advancement in technology has, to some extent, aggravated the magnitude of insurance fraud around the world.

Bernama has quoted Muhammad as saying that insurance fraudsters can now hide through a shield of anonymity online while they perform more complicated, expensive and elusiv fraud.

In the United Kingdom alone, insurance claims fraud topped GBP2.1bn, with nearly 60% of the total concentrated in the motor vehicle insurance.

In Malaysia, insurers and takaful operators posted estimated loss of MYR760 million in 2013 due to insurance fraud in the motor segment. – BusinessNewsAsia.com

By Business News Asia

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