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IFB annual research on how much Kiwis really understand about insurance fraud

September 7th, 2021

IFB has recently completed its annual research to understand how much Kiwis know and understand about insurance fraud. The results have confirmed that a concerningly large number of Kiwis still do not understand the serious implications of insurance fraud and the potential impact it can have on all policy holders.

“While the figures are still concerning, it is pleasing to see small improvements being made by our focused education efforts,” said Yvonne Wynyard, IFB Manager.

“Of the survey respondents, 12 percent confirmed to understand insurance fraud, up 3 percent year on year. And respondents confirmed they are starting to understand the potential implications, with 57 percent aware they could receive a criminal conviction if caught, up 5 percent.”

However, the estimated cost of insurance fraud on all policy holders continues to be underestimated, with six out of ten believing its cost up to $70 million each year rather than our industry estimate of $739 million, only dropping 1 percent year on year.

“The sad reality of insurance fraud is that it is a cost that is covered by all policy holders. Improving this understanding will continue to be a key focus for IFB in our educational programme for the year ahead.”

Further insights to the research can be found in the infographic download.

Through the IFB general insurers in New Zealand are working together to reduce the impact of insurance fraud on all customers. The survey insights will help the IFB continue its work to educate Kiwi’s about the implications of fraud as part of its work to deter fraudulent activity in New Zealand.