Tuesday, 19 January 2016

UK: Insurance Fraud Taskforce final report recommends board level ownership of fraud

The Insurance Fraud Taskforce, set up with the aim of investigating the causes of fraudulent behaviour and recommending solutions to reduce the level of insurance fraud, has published its final report: see here (pdf). The report recommends, on the basis of good practice identified amongst insurers, that there should be board level of ownership of counter fraud activity.

The report states (para. 4.28): "By assigning Board level ownership and ensuring responsibility rests with the most senior decision-makers, firms are better placed to manage potential conflicts of interest between departments and to establish a culture and strategy for tackling fraud. It is for individual firms to decide their own governance structures, but in practical terms the Taskforce considers that fraud would appear on the risk register and be a standing item at Board meetings".

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