Insurance industry officials in Malaysia are considering a system that will detect potential fraud and allow member companies to take appropriate action in a move to cut the rising cost of motor claims.
Antony Lee Fook Weng, chairman of the General Insurance Association of Malaysia, said all stakeholders in the industry are working on the system as they have seen a rapid increase in motor accident claims revolving around issues such as cost of parts, fraud, driving habits and inclement weather.
In 2015, the industry paid out M$5.3 billion (US$1.3 billion) in motor insurance claims compared to M$5.04 billion in 2014.
Weng said that the Malaysian insurance industry is also preparing for significant changes after Bank Negara Malaysia’s announcement of the phased liberalisation of fire and motor tariffs.
This, he said, will benefit consumers by allowing for a wider range of products with a fairer risk-based pricing.
Source – http://insuranceasianews.com/topics/legal-regulatory/malaysia-plans-insurance-fraud-detection-system/