Fraud in the Insurance Industry in Ghana

What is it about?

The paper examined the extent of effects of insurance fraud on the financial performance of insurance companies in Ghana. It also examines the causes and stringent measures that can be used to fight against insurance fraud.

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Photo by Helloquence on Unsplash

Photo by Helloquence on Unsplash

Why is it important?

The results indicated that statistically insurance fraud has a significant negative effect on the annual return on assets (financial performance) of insurers. The findings also showed that weak internal controls, poor remuneration of employees, falsified documents, deliberate acts of policyholders to profit from the insurance contract and inadequate training for independent brokers are found to be the major causes of insurance fraud. In order to deter insurance fraud, effective internal fraud policy, rigorous assessment of insurance policies and claims, adequate training for independent brokers on insurance fraud and modern information technology tools are paramount in fighting this menace. These findings are to have substantial impact on the techniques insurance companies will develop to fight insurance fraud and the policies that will be developed by governments and national insurance regulatory bodies to fight this menace. This article contributed to the rare research papers in the developing world on insurance fraud. disease groups contacting me and ultimately to a greater involvement in rare disease research.

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