How insurance fraud is impacting South African consumers

INSURANCE fraud is becoming more frequent, more sophisticated, and far more costly.

- LIEZEL VAN DER SCHYFF

In 2023 alone, South African life insurers and investment companies detected 13,074 cases of fraud and dishonesty, a staggering 46% increase from the previous year’s 8,931 cases. Losses linked to these activities jumped by 128%, rising from R77.2 million in 2022 to R175.9 million in 2023, according to the Association for Savings and Investment South Africa (ASISA).

This increase isn’t just due to more people trying their luck. We're seeing a definite shift in how fraud is being perpetrated. It's more organised, more deliberate, and often coordinated. It’s no longer just individuals inflating a claim. There are syndicates, fake brokers, and even inside help in some cases.