Gilles Renouil, Director, Product Development (Microinsurance) wrote an article on Women’s World Banking’s approach to managing fraud in microinsurance.
Every year, the insurance industry spends billions of dollars to prevent and detect fraud and yet a large part of fraudulent cases remain unnoticed. So when a global insurer told Women’s World Banking that they were not participating in the tender process for our microinsurance program in Egypt, should we have been surprised? The insurer was frank in their reasoning: they did not believe that fraud could be controlled in this segment.
Our work in five low-income markets across the world has proved that fraud is challenging but can be managed.
In this article, we lay out the key lessons and recommendations for an effective fraud protection for microinsurance.