Insurance experts decry high cases of fraud in the industry

Business

Close to 33 Insurance companies in Uganda have decried the high cases of fraudsters masquerading as players in the Insurance sector.

These say fraudsters create websites of existing companies and document policies to provide fake policies to present fake claims to the Insured. Reports from the regulator indicate that fraudulent insurance claims demonstrated an increase from 3 billion shillings in 2028 to 5 billion shillings in 2019.

Tough economic times in Uganda and around the world have brought to sharp focus the role of insurance in mitigating pressures in business and trade.

This is because appropriate insurance policies help traders guard against eventualities such as fire, accidents, and other financial losses.

But while the use of Insurance continues to dominate the majority of businesses in Uganda, fraudsters have used online platforms to fleece policyholders promising them fake insurance in return for money informed of premiums to get ungenerous claims in the system.

Hamuza Mutebi an Industry captain stresses the need for continuous sensitization by Insurance companies to policyholders to keep the insured in the know to avoid following prey to fraudsters while looking for policies to take up.

"The fraudsters document fake policies and provide ungenerous claims to people, but also industry players should continuously sensitize their customers on how they should avoid falling prey to these fraudsters," Mutebi said.

But while all this transpired in the Insurance Sector cyber security experts called upon the insurance companies to top their game in continuous awareness interactions and also went further to caution policyholders to avoid opening numerous links and make thorough research before taking up a certain policy.

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