Your assignment is to prepare and submit a paper on anti-corruption and integrity at the car insurance company. The study identifies the main causes of fraud cases and corruption in this industry. It has been identified that the major cause of fraud cases in the insurance companies is poor management in these organizations. It is necessary to have cooperation among the leaders in order to facilitate the policy formulation process. The study also gives an analysis of some of the measures which have been applied in an effort to combat these misconducts in car insurance companies. Finally, the study highlights some recommendations on how fraudulence and corruption can be completely combated in insurance companies.
Over the past, the issue of corruption and integrity in car insurance has become one of the major problems facing many insurance companies. Integrity is of great significance in any insurance company. Many companies have incurred huge losses through corruption. The long-run success of any insurance company is determined by its ability to maintain a high level of integrity.
Corruption and fraudulence in the car insurance companies have significantly affected their ability to provide quality services to their clients. For instance, when the company compensates fake cases, this may lower their ability to offer the best services on genuine cases. This may significantly affect the company’s performance both in the short and the long run. Frauds lead to an increase in car insurance premiums. The number of fraud cases has become very high while the companies incur too much in an attempt to reduce the level of such cases.
Therefore, the company has a task of ensuring that only the right claims are compensated. However, this will need assistance from all the parties concerned.
Corruption and integrity in car insurance
In many cases, companies encounter cases of corruption in their day to day operations. These significantly hinder the company’s efforts to achieve its targets. As already noted, these have also contributed to the increase in the insurance premium significantly. It is advisable for the stakeholders and any other response to be able to detect and report such cases to the responsible parties.
One of the frauds which the company has encountered is hard fraud or the fabricated car insurance claims. Hard fraud is a form of corruption in insurance transactions where individuals engage in the premeditated act with the purpose of benefiting from a false claim (Arrive Alive, 2010). In this case, the loss of the vehicle is planned in an effort to convince the insurer to pay out the value of the policy. However, this is just a dummy loss where there is no loss in real sense. These acts have negatively affected the performance of many insurance companies. In the current world, these cases have significantly increased. There is an increasing tendency of the insurers to make false claims where the general loss never exists. Over the past, there have been reported some cases where some vehicle owners transfer their vehicles to the neighboring countries just to claim that they have been stolen (Anderson, Stanzler & Masters, 1999). Some of such bogus clients end up convincing the company to cover the loss which never exists.
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