Thursday, October 19, 2017

Hong Kong official wants insurers to share information

Insurers have been called to share information among themselves if they want to better address the challenge posed by the increasing number of fraud cases in the industry.

The call comes as the newly established Insurance Authority in Hong Kong focuses on reducing fraudulent transactions in the sector over the next few years.

It is estimated that about 10% of the global compensation claims on property or personal accidents are deceptive, said a blog entry by James Lau, the secretary for financial services and the treasury.

He cited statistics from the Hong Kong Federation of Insurers to back his estimates.

In some cases, an insurance claim for a damaged item would be made against up to eight insurance firms at the same time.

Thus, if insurers don’t share information among themselves, they will remain unaware of such multiple claims, which will eventually lead to premiums escalating.

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