FRAUD CONTROL AND MANAGEMENT IN INSURANCE BUSINESS

ABSTRACT Insurance business is based on truth but fraught with frauds perpetrated by the various actors in the insurance industry i.e. the insured, the broker, the loss adjuster and ironically the underwriters. Munich Re of Germany in 1994 published an article titled Insurance frauds in life, health and accident insurance’ which is only a small fraction of the myriads of politics available in the insurance industry. An attempt has been made to view insurance fraud in virtually all the main classes of insurance; indemnity and indemnity policies. The various stages of insurance business at which fraud can be committed have been highlighted with a view to alerting all and sundry on when, where, and how insurance fraud can be committed as well as the potential fraudsters. Having discussed insurance and fraud generally some recommendations have been made on how to minimize insura