Table II: Typical Insuarance Service Provider Fraud Indicators
Effective from Jan 31 2025 - Dec 17 2008
To view other versions open the versions tab on the right
Table II: Typical Insuarance Service Provider | |
| Finance | ◄ Intermediary is in financial distress |
| Portfolio | ◄ Portfolio is small but has high insured amounts |
| ◄ Number of insurance policies where the commission is higher than the first premium is high | |
| ◄ Portfolio contains an arrear of premium payments | |
| ◄ Portfolio displays high amount of claims fraud or a disproportionate number of high risk insured individuals, (e.g., elderly people) | |
| Operations | ◄ Intermediary operates outside the region of the policyholder |
| ◄ Intermediary asks for an immediate or in advance payment of commission | |
| ◄ Intermediary asks the policyholder to make payments via the intermediary himself which is an unusual business practice | |
| ◄ Intermediary receives premiums and pays commissions that are above or below the industry norm for the type of policy | |
| ◄ Intermediary has a relatively high claims ratio | |
| ◄ Intermediary has an exceptional increase in production without apparent reason | |
| ◄ Intermediary has a high level of early cancellations | |
| ◄ Intermediary has a high number of unsettled claims | |
| ◄ Intermediary insists on using certain loss adjusters and/ or contractors for repairs | |
| ◄ Intermediary changes control or ownership frequently | |
| Conduct | ◄ Intermediary has a personal or a close relationship with the client |
| ◄ Intermediary changes name and address frequently | |
| ◄ Intermediary has a number of complaints or regulatory inquiries | |