Kathmandu. Bangladesh’s insurance sector is currently in crisis. Trust and transparency are becoming the biggest challenges. One of the biggest obstacles to the growth and sustainability of this sector is insurance fraud. An invisible but serious problem is undermining the entire system. Concerted efforts by regulators, companies, and the public to prevent fraud are the need of the hour.
Trust is the foundation of the insurance industry. Customers pay a premium expecting safety and it is the responsibility of the company to ensure compensation. But when there is fraud, this mutual trust is shattered. On the one hand, the genuine claimants bear the loss, while on the other hand, the honest customers face increasing premium pressures. In such a situation, the most effective weapon of prevention is awareness and good governance.
Many people fall prey to fraud due to the lack of adequate information about insurance among the public. The general public needs to be made aware of the terms and conditions of insurance, the claims process and the potential risks. There is a need for continuous awareness campaigns through media, social media, educational institutions and company-owned campaigns. If people understand, insurance is not just a paper contract but a guarantee of financial security.
Not only the customer, but also the employees of the insurance sector need to be trained to recognize the signs of fraud or anomalies. A combination of experience and technology-based analysis can identify dubious claims. Artificial intelligence (AI) and data analytics are now playing an important role in preventing fraud. In addition, the use of blockchain technology makes it possible to keep documents and transactions secure and transparent. Reduces the chances of fake information or fake documents.
Strengthening the legal framework is the need of the hour. Laws should be strict to prevent fraud and their implementation should be fair and effective. Regulatory bodies, especially the Insurance Development and Regulatory Authority (IDR), play an important role here. Their role is not just to issue sanctions, but to ensure overall discipline and accountability in this area. If investigation, monitoring and punishment are not effective, the culture of fraud will only be reinforced.
Transparency and information sharing between insurance companies should be enhanced. If necessary, a system of joint research and information sharing can be developed through public-private partnership. This will make it easier to identify patterns of fraud and prevent fraudsters from using the same tactics over and over again across different organizations.
The general public should also be aware of this. There should be a confidential and secure complaint system so that anyone can easily report suspected fraud. Sometimes people are reluctant to report for fear or fear of persecution. It’s important to break this mentality. Because every citizen has an important role to play in preventing fraud. – Rajkiran Das/Insurance News BD
