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Daily Insurance Industry News
Monday 22nd of January 2018
December 23, 2008

Marsh warns of rise in fraud claims

by Gill Montia

Story link: Marsh warns of rise in fraud claims

Marsh has warned that fraud claims will rise steeply in 2009, as the global economy continues to deteriorate.

According to the broker and risk management specialist, reported fraud cases in the UK are up 15% on 2007 and more companies will therefore be buying fraud protection insurance next year.

The firm’s managing director of financial and professional practice, Dean White, points out that when times are hard, fraud increases because unlawful practices which otherwise would have been viewed as unacceptable suddenly may appear to be a lucrative option.

Mr White believes this year’s official rise in reported fraud probably masks the true picture; he is aware that many of his existing clients have increased their levels of protection and in some cases expanded coverage to include computer and data-related fraud.

The broker expects financial institutions to head the league table of victims in terms of overall monetary value but is predicting that the sharpest increase will be seen in corporate, non-financial institution fraud and theft.

Marsh recommends that good risk management is essential to understanding and addressing the threats posed by corporate fraud and can mean the difference between survival and failure for many enterprises.

 

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