Asisa reports a rise in insurance fraud cases despite reduced losses

SOUTH African life insurers and investment firms prevented fraud and dishonest activity totalling R1.4 billion in 2024, according to the Association for Savings and Investment South Africa (Asisa).

- DIEKETSENG MALEKE

However, Asisa says actual losses incurred by the industry still amounted to R131.6 million, underscoring the persistent threat posed by financial criminals.

Compiled by Asisa’s Forensic Standing Committee, the association’s annual statistics reveal a sharp 26% year-on-year increase in detected cases, rising from 13,074 in 2023 to 16,520 cases in 2024.

Despite this spike, the Rand value of actual losses declined from R175.9m in 2023 to R131.6m in 2024, proof, the industry says, of its increasingly effective counter-fraud strategies.

According to Jean van Niekerk, convenor of Asisa’s Forensic Standing Committee, the R131.6m loss represents only 0.02% of total honest claims paid by Asisa members, which reached a record-breaking R639 bn in 2024.

“Our industry has always been seen as a soft target by criminals and dishonest individuals because of the significant amounts of investments and benefits being managed.”But it is getting increasingly difficult to get away with fraud and dishonesty. If we allowed fraud to get out of hand, premiums would have to go up and ultimately, honest policyholders would be paying the price,” Van Niekerk says.