Insurance Crime Bureau set to expand across Africa

The former South African Insurance Crime Bureau has been renamed, in a move that will allow it to expand into the rest of Sub Saharan Africa. Hugo van Zyl, chief operating officer of the newly named Insurance Crime Bureau, explained that dropping South Africa from its name, as well as referring to insurance crime rather than just fraud would allow the organisation to grow. Speaking exclusively to Commercial Risk Africa during the Insurance Conference 2017 at Sun City, he stressed: “It is important to know that we will pursue insurance crime beyond the South African borders.” He said the move is in response to the number of its member companies who now have operations further north in Africa but also to the way in which many of the organised crime gangs are working. “The change in name also reflects the fact that organised gangs are not just committing fraud in the short-term insurance market but are also heavily involved in physical crimes.” Cloned vehicles, he said, have been growing in number. They have found that some 60% of vehicles stolen or hijacked have returned to the South African roads, often sold to innocent people. He cited the example of 47 stolen vehicles recently recovered in Durban, of which 19 were returned to insurers, a few were given back to banks and finance houses, and 14 were returned to their uninsured owners. Mr van Zyl said it is worth remembering that South Africa does not have compulsory insurance and some 35% of vehicles on the roads are not insured. By spreading into the rest of Africa, the new bureau hopes to be able to build stronger relationships with the authorities in those countries. Mr van Zyl said the Zimbabwean industry is keen that they help that market develop a similar operation there to stem insurance crime. “Growing our model into the rest of Sub Saharan Africa is a long-term strategy and will take us three to five years. And we want to attract more life insurance members, because life insurance, particularly funeral insurance, attracts criminals. “In South Africa, for example, there is a growing trend of murder for money,” he warned. Another trend is accident staging, in which the gang recruits drunks to drive expensive cars which are then crashed into by a much smaller, less expensive vehicle by a gang member. They then claim for the lower cost car and third-party claims of the more expensive vehicle, often including finance deals, as well. One gang had carried out 48 accidents, claiming from nine member companies and costing the industry millions of rand. “Another problem is identity theft. Because insurers will often fast track claims of up to R30,000 on production of three pieces of evidence without quibbling, fraudsters will produce that evidence with ease.” In one case currently going through the courts, one man had taken the identity of 39 people and was now charged with 164 counts of fraud. The challenge, he said, is for insurers to treat customers fairly versus organised crime and fast-tracked claims.

Insurance Crime Bureau set to expand across Africa

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