• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

25% of insurance claims fraudulent – NIC

4 years ago
in Business, Editor's pick, highlights, Home, home-news, Insurance, latest News, Markets
2 min read
0 0
0
120
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

25% of insurance claims are fraudulent, staged, and inflated – National Insurance Commission (NIC).

Twenty-five percent (25%) of all insurance claims made in the country are fraudulent, inflated, and staged by insured persons, says Commissioner of the National Insurance Commission (NIC), Dr Justice Yaw Ofori.

“I don’t have the exact figure but I can say that in Ghana we should have about 25 percent of claims being fraudulent, staged and inflated, to the point that even sometimes insured persons stage their death to make a life claim,” Dr Ofori stated.

Adding that, fraudulent claims add to the high cost of premiums charged insured persons in Ghana and globally.

“So far as there are leakages (fraudulent claims) it results in high premium payments for consumers worldwide,” he added.

Globally, fraudulent claims account for 40 percent of all insurance claims made.

Dr. Justice Ofori in an interview said investigations into claims by insured persons need to be carried out by insurance companies to ascertain the legitimacy of claims made.

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

“It’s the responsibility of insurance companies to do due diligence before embarking on claims payment, investigations into claims are important to weed out fraudulent claims,” he noted.

Speaking further, Dr Ofori averred the Commission is looking to set up a digital platform to monitor and track processed claims by all insurance companies in the country.

“We are looking to build a digital base which is going to be a hub on which all the insurance companies in the country will have to process their claims and once we have that information we can track down people who are high risk, involved in fraudulent claims and all that. Because for now we don’t have the software to do that and so its very difficult to track persons that make fraudulent claims,” he said.

He however, quickly added that the Commission is likely to have such a software or digital base in place by the end of this year, on the back of a grant approved for the creation of the database by the World Bank.

Also touching on the Ghs 50 million minimum capital requirement for insurance firms, Dr Ofori posited that insurance firms in the country are working towards attaining the set minimum capital requirement, stating that most of the firms have presented to the NIC their work plan on achieving the capital requirement.

“We are still encouraging the insurance firms to meet the minimum capital requirement by the end of this year. Most of the insurance companies have brought their work plan on how they are going to achieve the Ghs 50 million. So it’s in progress and by the end of the third quarter we will have a clear picture of those who can meet it and those who can’t. But most of the firms are doing all they can to meet the requirement,” he intimated.

Previously, insurance companies in the country were to recapitalise with a minimum of Ghs 50 million by June 30, 2021.

Reinsurance companies and Insurance Broking companies were also to recapitalise with at least Ghs 125 million and Ghs 500,000 respectively, while that of Reinsurance Broking companies was maintained at Ghs 1 million.

The new MCR according to the NIC is to strengthen the balance sheets of regulated insurance entities, thereby enhancing their underwriting capacity and make resources available for investment in essential technology.

The move is also to improve the development and distribution of appropriate products to increase insurance penetration while strengthening the regulatory framework, implementation of risk based supervision and solvency requirements, strengthening risk management and corporate governance structures and practices including claims payment culture within the industry.

Currently, there are about 142 regulated insurance entities comprising 24 life insurance companies, 29 non-life insurance companies, three reinsurance companies and 85 insurance brokers and loss adjusters with more than Ghs 6 billion in total assets.

Source: norvanreports
Tags: Dr Justice Yaw Ofori.fraudulent claimsGhs 50 million minimum capital requirement for insurance firmshigh cost of premiums charged insured personsNational Insurance Commission (NIC)
No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.