Firm partner credit bureau to curb insurance fraud

13Jun 2016
Dickson Ng`hily
The Guardian
Firm partner credit bureau to curb insurance fraud

IN a move aimed at strengthening its risk management processes and curbing the highly increasing rate of insurance related frauds, MGen Insurance Company Limited recently partnered with Dun & Bradstreet Credit Bureau to develop detailed profiles of insurance clients’ history.

Adebowale Atobatele

The profiles will also provide access to the credit history of such applicants in cases where prospective clients are applying for an insurance product or service.

The frauds include false claims for damages and injury claims, Charles Sumbwe, Managing Director of MGen Insurance Company said.

The partnership move is considered by industry observers as timely and relevant, and among other things is expected to ensure that the insurance company is able to reduce vulnerability to high-risk individuals or companies, he said.

In addition, ‎it offers prospective customers of the insurance company assurance of fair and objective assessments, Sumbwe noted. Sumbwe, who was speaking on their engagement with the bureau, said:

“We are delighted that Dun & Bradstreet Credit Bureau has come forward with an innovation which will in no small way, ensure that we are able to assess and measure the risks associated with insuring our customers.”

He added: “The partnership will enable us to make fair judgements of our customers and lead us to make objective decisions that will ultimately ensure service levels are enhanced as a result of weeding out those that create undeserving pressure by non-payment of premiums or by stage managing claims.”

Speaking after signing the agreement, General Manager of Dun and Bradstreet, Adebowale Atobatele said: "We appreciate the management of MGen Insurance for giving us the opportunity to be a part of their risk assessment and management process.”

“We are confident that they will, in very little time, witness a positive transformation in the behaviour of their customers as more individuals and businesses covered by insurance companies make adjustment to ensure that their profiles stay clean,” Atobatele said.

It is our anticipation that other insurance companies will join hands with us to build a truly respectable credit and claims reporting eco-system for Tanzania where every stakeholder gets the value they deserve."

The use of credit bureaus such as Dun & Bradstreet, will in the long term ensure that the insured enjoy more affordable services because pricing depends on loss experience over time, a match between risks and rates and the availability and affordability of insurance products and services, he said.

Studies of insurance companies in other claims have shown that consumers with better credit and insurance history as shown in their reports generally have fewer losses and file less expensive claims, he added.