Fraud list to allow for data sharing between across borders
UK insurers have poured cold water on regulators’ plans to launch an international database, questioning whether such an initiative could successfully combat fraud.
The International Association of Insurance Supervisors, which has members in more than 140 countries, plans to launch a global fraud database in two to three years that would allow for data sharing between various countries. It would also include a list of known fraudsters.
John Beadle, counter fraud manager at Royal & SunAlliance and chairman of the Insurance Fraud Bureau, questioned how such a system would work and whether the benefits would outweigh the costs.
He said: “I don’t see insurance fraud as being an overly cross-border issue and the costs of setting up a database would be considerable.”
Legally, a database could only contain the names of convicted fraudsters and since most fraud cases don’t end up in court, some insurers fear it could end up being a short list.
Most agree however, that a global database could be helpful in spotting trends by spreading awareness of what’s going on in other countries.