More insurance firms reported having experienced fraud and financial crime
More insurance firms than ever before reported having experienced fraud and financial crime in the last two years.
In the 2018 survey, 62% of respondents from the global Insurance community reported that their firms had been exposed to fraud and/or financial crime in the last 24 months. This marks a significant increase from previous surveys – the figure in 2016 was 37%, and for 2014 it was 35%.
The most regular offender was consumer fraud (67% of respondents), however many respondents reported actual exposure to a wide range of financial crime threats, including: asset misappropriation (46%), business misconduct (36%), cybercrime (25%), bribery and corruption (17%), accounting fraud (14%), procurement fraud (14%) and money laundering (9%).
Disruption over the next two years
Disruption over the next two years in the Insurance sector is expected to come from all manner of fraud and financial crime risk areas.
When asked about what would cause the most disruption in the next 24 months, the highest number of global Insurance sector respondents pointed to cybercrime (30%) and consumer fraud (29%). However, many acknowledged that disruption could originate from a wide spectrum of risk areas including: business misconduct (9%), asset misappropriation (7%), money laundering (6%), and bribery and corruption (5%).
Experience of the Insurance community
Experience of the Insurance community indicates that regulatory scrutiny of anti-money laundering (AML) measures is on the rise.
Over 80 global respondents reported that their institution had been subject to a regulatory inspection focussed on AML matters within the last 2 years. Furthermore, over 30% of these respondents stated that their firm was either addressing major feedback following the inspection or was under an enforced remediation program.