South Africa is combating fraud and abuse in insurance

The South African Government declared on 28 February 2019 its intention to collaborate with the insurance industry to combat insurance fraud and abuse in health insurance.

According to a manager from the Council for Medical Schemes, this practice is costly to insurers with an estimated loss of 1.8 billion USD.

Fraudulent compensation, unnecessarily prescribed drugs and abuses on medical cards penalise the insurance industry and could lead to the increase in the price of drugs.

According to the South African Insurance Association, 32% of the claims are fraudulent.