Meet the experts working to reduce the cost of insurance for all New Zealanders.
This Month’s Expert
Yvonne Wynward: IFB Manager
Bio:
Yvonne holds a Master of Training Development and a Bachelor of Administrative Leadership from the University of New England in Sydney, Australia. She spent 22 years with the New Zealand Army as an intelligence practitioner, trainer, and manager, followed by 9 years at ACC, where she developed and implemented their intelligence capability.
In her current role, Yvonne oversees the ICR, liaises with fraud community stakeholders, supports ICNZ members analytically, leads content for fraud public education, and manages fraud-related issues in the general insurance industry.
What’s the broader economic impact of insurance fraud on New Zealand’s economy?
What many kiwi’s don’t realise is, insurance fraud has a significant broader economic impact on New Zealand’s economy. It leads to increased insurance premiums for all policyholders as insurers pass on the costs of fraudulent claims to consumers. This inflation of premiums reduces disposable income for households and increases operating costs for businesses. Additionally, the resources spent on investigating and combating fraud diverts funds from other productive uses, hindering economic growth. A key concern for our IFB team is that fraudulent activities undermine trust in the insurance industry, potentially leading to underinsurance and financial vulnerability among individuals and businesses. Overall, insurance fraud strains the economy by inflating costs, misallocating resources, and eroding confidence in financial institutions.
How do fraudulent claims affect the processing and approval of legitimate insurance claims for all New Zealanders?
Fraudulent claims significantly impact the processing and approval of legitimate insurance claims for all New Zealanders by creating additional layers of scrutiny and investigation. What I’ve seen over my years with IFB, is that insurers must allocate more resources and time to detect and verify fraudulent activities, which slows down the overall claims process. This delay affects honest New Zealanders, who may face longer wait times for their claims to be processed and approved. The increased workload on claims adjusters and investigators can lead to backlogs and inefficiencies within the system. Furthermore, the heightened vigilance required to combat fraud can result in stricter claim assessment criteria, potentially making it more challenging for legitimate claims to be approved promptly. Overall, fraudulent claims complicate the insurance process, causing inconvenience and financial strain for honest policyholders.
What role can the general public play in identifying and reporting suspected insurance fraud?
In New Zealand, we rely on ordinary kiwis to play a crucial role in identifying and reporting suspected insurance fraud. By staying vigilant and aware of common fraud tactics, individuals can help protect the integrity of the insurance system. We encourage people to report any suspicious activities or claims to their insurance providers or the Insurance Fraud Bureau. We’ve found that public cooperation can significantly reduce fraudulent activities, ultimately leading to fairer premiums and a more trustworthy insurance industry. We want to make sure that the insurance market remains reliable and equitable for all Kiwis.
Are there any recent trends or patterns in insurance fraud that New Zealanders should be aware of?
Recently we’ve seen a rise in sophisticated scams, including staged accidents and exaggerated claims, often involving motor vehicle and property insurance, where perpetrators manipulate evidence or inflate damages to secure higher payouts. Additionally, there has been an increase in cyber-related insurance fraud, where digital platforms are exploited to submit false claims or steal personal information. Staying informed about these trends and maintaining a critical eye on suspicious activities can help New Zealanders protect themselves and support our ongoing efforts to curb insurance fraud in the country. We need the public to be aware of these trends so that they know what to look out for. Prompt reporting of any dubious claims are essential in maintaining the integrity of New Zealand’s insurance system.
What resources or support systems are available to help New Zealanders understand and combat insurance fraud?
New Zealanders have access to various resources and support systems to help understand and combat insurance fraud. The Insurance Council of New Zealand (ICNZ) website provides valuable information and guidelines on identifying and reporting fraud. Then we, at the Insurance Fraud Bureau (IFB) together with insurer member fraud investigators are a dedicated body that works to detect, prevent, and investigate insurance fraud across the country, offering a confidential hotline for reporting suspicious activities. Additionally, many insurance companies offer customer support services to educate policyholders on recognising potential fraud. By accessing these confidential resources, you can play an active role in maintaining the integrity of the insurance industry.
You can help IFB reduce the cost of insurance for all New Zealanders. If you see fraud, report it.