New Zealand: Insurers battle "white lies" in claims
Source: Asia Insurance Review | Oct 2017
Dishonesty is a serious problem for insurers, with some consumers believing that they have a “right” to lie on their insurance claims.
It has been estimated that insurance fraud costs insurers NZ$150 million (US$110 million) to NZ$250 million a year, or up to 10% of all claims. The Insurance and Financial Services Ombudsman Karen Stevens said that people “don’t really understand what the consequences are if they tell ‘a bit of a lie’ or a ‘little white lie’.”
Insurance companies often use private investigators to examine claims they think might be fraudulent. Ms Stevens said many people admitted the lie at that point, but it was too late. “Claims are declined, and the flow-on effects include cancelled policies and names registered on the Insurance Claims Register,” said Ms Stevens. Once on the register, names are never removed, which can make it impossible to take out a new policy. A