Insurance fraud spikes

ASISA: FINDS 26% RISE IN ATTEMPTED CRIME

- Anathi Madubela

South African life insurers and investment companies reported a spike in attempted fraud last year, highlighting the industry's efforts to protect policyholders and uphold the integrity of the system. Annual fraud statistics compiled by the forensic standing committee of the Association for Savings and Investment South Africa (Asisa) show that member companies detected 16,520 cases of fraud and dishonesty in 2024, a 26% increase from the 13,074 cases recorded in 2023.

Jean van Niekerk, convenor of the Asisa forensic standing committee, says despite a significant increase in fraud and dishonesty detected last year, the rand value of losses decreased from R175.9 million in 2023 to R131.6 million 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," he said.