South African insurance companies are noticing an increase in the number of fraudulent insurance claims, the ratio of fraudulent claims is costing the short term insurance industry close to two billion rands per annum.

With the current economic status any more increase in fraudulent activity will present further negative situations for honest consumers who will have to face these circumstances because of higher premiums implemented by insurers who are attempting to get a bit more than necessary out of what their properties cost them.

The South African Insurance Association has voiced a need for all insurance gurus and experts to come together and resolve this matter before it gets any worse. The recently developed Insurance Crime Bureau (ICB) will be able to assist the industry as it aims at curbing and preventing insurance related crime.

The criminals caught by the ICB will be reported to relevant law enforcement and authorities followed by prosecution.

This type of fraudulence corrupts the basic principal governing insurance practices, where the losses of the few are made good through contributions of many insurers.

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