Addressing Fraud risks in the General Insurance industry has been saved
Addressing Fraud risks in the General Insurance industry
Cover your policy before it ‘matures’
Some of the key challenges faced by general insurance companies while trying to mitigate the risk of fraud is the increased dependence on numerous third parties, finding the right balance between automation of systems and manual intervention in underwriting and claims processing; and decentralization v/s centralization with regard to defining the powers of the regional offices.
The Indian general insurance market has grown almost four times in the last ten years from USD 3.4 billion in FY 2004 to USD 12.7 billion in FY 2013. The number of policies have almost doubled from 43.6 million in FY 2003 to 85.7 million in FY 20121. But at the same time, the overall claims ratio has also remained high at nearly 89 percent in FY 20122 – a clear indication that the sector has its fair share of problems.
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