Jersey-based agency under investigation after ’potential fraud activity’ came to light
A Jersey-based insurance society is being investigated for potential fradulent behaviour which could have been going on ‘for years’.
Jersey Mutual Insurance Society said in its recently released finances that it has ”become aware of potential fraudulent activity that has occurred over a number of years and is currently undertaking detailed investigations as to the significance and impact of this matter.”
The nature of the fraudulent activity is not disclosed but the society did send a letter to all of its members, as reported by the Jersey Evening Post, reassuring that their policies had not been affected.
According to the company finances, all directors are satisfied that:
- The Society’s members remain fully insured in line with the terms and conditions of their respective insurance schedule;
- The Society’s reinsurance partners are fully aware of the situation and continue to fully support the Society. Furthermore, the Society has recently renewed its reinsurance programme, as per the previous terms, with effect from 1 October 2018;
- As detailed in the balance sheet, the Society retains significant reserves backed by a portfolio of liquid investments; and
- As a result, the continued strength of the Society and the interests of its members have not been substantially compromised.
Withheld payments to reinsurers
The report did, however, state that reinsurers may have had payments “inappropriately withheld”.
As a result, Jersey Mutual included a provision in its financial statement, amounting to nearly £350,000.
The investigation is ongoing and Jersey Mutual has promised to keep members updated.
Due to the nature of the investigation, Liberty Mutual were unable to provide further comment.