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Najm for Insurance Services recently held a workshop on “Combating Insurance Fraud in the Motor Sector,” under the sponsorship of the Insurance Authority, and in cooperation with the General Department of Traffic. The workshop took place at Dana Rayhaan Hotel in Dammam.
The event discussed means of combating fraud and illicit gain in motor insurance. It also raised awareness on the negative effects of fraud, which are reflected on the economic performance, in general, and on all stakeholders, in particular. Participants in a panel discussion drew attention to the damages resulting from fraudulent operations, solutions to resolve these financial crimes, and efforts to activate these solutions.
This workshop is part of a series of workshops that Najm plans to organize across several cities of the Kingdom, including Riyadh and Jeddah, in cooperation with its strategic partners from insurance companies. Additionally, it is in line with Najm’s efforts to combat fraud, which is one of the main challenges facing the Saudi insurance industry.
CEO of Najm Mohammed Y. Al-Shehri said: “Najm’s strategy aims to enhance its leading role in supporting the Kingdom’s motor insurance sector, and to maximize its positive economic impact, through initiatives and services that consolidate the concepts of integrity, credibility, and safety. Insurance fraud is considered one of the most important issues that Najm and other authorities are working toward combating, by strengthening their capabilities in four key elements: human capital, technical systems, regulatory procedures, and awareness.”
In a speech delivered during the workshop, Ahmed Alqasir, executive director of the insurance supervision general department and acting director of legal affairs and enforcement, expressed appreciation to the General Department of Traffic for their attendance. He also thanked Najm for organizing the workshop. He spoke about the important role of the Insurance Authority and its efforts to combat fraud in vehicle insurance claims.
Alqasir stressed the importance of cooperating with the relevant authorities, as well as the need for insurance companies to overcome key challenges and help reduce the negative impact on the insurance sector and the national economy. He said the Insurance Authority is taking the necessary measures to develop advanced systems to detect fraudulent indicators and patterns.
This will in turn protect the rights of beneficiaries and policyholders, as well as support the Kingdom’s financial stability and contribute to sustainable economic growth.
Adel Issa, spokesman for the insurance industry, shed light on the negative effects of fraud on the motor insurance market, and the large losses that insurance companies are exposed to due to fraud. Some of these fraudulent practices include the payment of undeserved compensation for fake incidents, the incurring of significant technical and administrative expenses to develop fraudulent detection systems and training work teams, in addition to the costs of seeking judicial expertise to deal with court cases.
Abdulmajeed A. Al-Rebdi, vice president of the compliance and risk sectors at Najm, highlighted the company’s efforts in combating fraud. He said that Najm leads the anti-fraud efforts to provide optimum levels of safety and protection.