Health insurers tackle fraudulent claims together
Health insurers are to band together in an attempt to tackle fraudulent claims.
PruHealth, Axa PPP Healthcare, Norwich Union, WPA, Standard Life Healthcare, Exeter Friendly, Groupama, CS Healthcare, Simply Health and Cigna will all share data using a web-based intelligence sharing system supplied by the Health Insurance Counter Fraud Group.
The system allows insurers, under a loophole in the Data Protection Act, to share personal information about consumers they suspect of fraud. For a safeguard, the system will have a 'code of conduct' and cases not found to be fraudulent, while still being kept on the system, will have a note added saying that the allegations were unproven.
One estimate of fraud on insurance policies was given as 5% of claims paid. However, Charlie MacEwan, head of communications at WPA, said such figures were only estimates. He said: I'm going to say that I have no idea (of the proportion of estimated fraud) but the WPA view is that we will chase anyone we suspect of fraud until we get everything back."
He added: "We've got to be on our guard against fraud. If someone is going to take advantage of you once, they will do it again. We are on our guard but we can't put figures on it. It would be a guess and they are invariably wrong."
Norwich Union has also bolstered its anti-fraud measures by announcing plans to launch a counter-fraud programme with KPMG.
