Fraud risk management in Namibias life insurance sector

Life insurance fraud is a growing issue in Namibia. A recent real-life case in 2024 revealed how easily fraud can occur when identity verification and claim validation gaps exist. This article shares what happened, offers practical ways to reduce your risk, and explains why understanding insurable interest is essential for every policyholder.A Real Incident That Raised ConcernIn 2024, a case came to light where someone used a stolen national identity card and false death information to submit claims to several insurance companies. The fraud led to close to N$550 000 in payouts before it was discovered. This situation shows how important it is for insurers to confirm policyholders’ identity and the validity of claims before making payments.Simple steps to protect yourselfHere are a few things you can do to protect your identity and reduce the risk of fraud involving your insurance:Check Your InformationMake sure all your personal and policy details are correct. Ask your insurer to confirm anyupdates you make.Protect Important DocumentsKeep your ID and other personal information safe. If anything is lost or stolen, report itimmediately to the police and your insurer.Watch for Unusual ActivityReview your bank and policy statements often. If you see anything that does not make sense, raise it immediately.Stay InformedRead up on how insurance fraud happens. Awareness of the signs can help you act quickly if something feels wrong.Why Insurable Interest MattersUnderstanding insurable interest is a fundamental rule in life insurance. It stipulates that the policyholder must have a genuine reason to take out a policy—such as being the insured person’s spouse, child, or business partner. This rule is in place to prevent anyone from taking out a policy on someone they barely know, thereby reducing the risk of fraudulent claims.Final ThoughtsLife insurance fraud is a significant risk, not just for insurers, but also for honest customers like you. By learning from real cases, such as the one in 2024, we can better understand the potential pitfalls. By keeping your information secure, asking questions when something seems amiss, and knowing what a valid policy should look like, you can actively contribute to maintaining the integrity of the system.*Timmy Munikaseke is the head of forensic services and anti-money laundering operations at Momentum Metropolitan Namibia.**

Fraud risk management in Namibias life insurance sector

Comments

Namibian Sun 2025-07-31

Please login to leave a comment

Fraud risk management in Namibias life insurance sector

Comments

Namibian Sun 2025-07-31

Please login to leave a comment

Login