Insurance firms ordered to establish anti-fraud plans

To better protect not only insurers but also their policy holders, the Insurance Commission has required insurance players to put in place anti-fraud plans.

Such plans will allow both life and non-life insurance firms to detect fraud early on and put a stop to fraudulent activities, Insurance Commissioner Emmanuel F. Dooc said in a statement Wednesday.

“The concept of mandating the submission of an insurer anti-fraud plan was developed to encourage insurers to proactively fight insurance fraud. It is necessary that all insurance companies are ready to combat insurance fraud for its own protection and for the welfare of its stakeholders. To adequately protect itself from the risks posed by insurance fraud, every insurance company should have an appropriate framework in place to prevent, monitor and investigate its occurrence,” Dooc said.

“Each anti-fraud plan should include measures to protect the company from policyholder and claims fraud, intermediary fraud perpetuated by an ordinary insurance agent, general agent, insurance brokers, management company of a consortium and adjusters, and from internal fraud including those committed by the director, manager or any other officers of employees,” Dooc added.