Magazine date:
Jun 2011 Insurance fraud has reached alarming proportions in South Africa. Latest estimates have referred to 3 billion ZAR (452 million USD) per year. This loss of income has resulted in continued tariff increases. Fraud accounts for 15% of the price of non-life insurance.
Life insurance is also affected up to 100 million ZAR (15 million USD). A body, including ten insurers, was established in 2008. It operates with various agencies to track down abusers. The precarious economic situation has pushed some policyholders to cancel their insurance policies whose prices have become too high.