The FSA has launched a streamlined system for reporting financial crime in the insurance industry.
The FSA has given examples of insurance fraud that include:
- Issuing of false cover notes or false certificates of insurance;
- Failure to pass on premiums, refunds or claims;
- Misappropriation of client monies or monies held under risk transfer agreements; and
- Falsifying customer details to obtain insurance business.
The FSA hopes that the streamlined reporting system will enable it to target its investigations more efficiently and to take action more promptly when issues arise. This scheme has been devised with the assistance of the Association of British Insurers and the British Insurers Brokers’ Association.
As this is a voluntary initiative and the FSA is looking for industry assistance. Any information sent to the FSA in this regard should be clearly marked “Information from Insurance Firms and Intermediaries – Insurance Intelligence” and sent to the FSA’s firm contact centre, e-mail address: email@example.com.