Chinese insurance companies fall victims to fraud

Li, a 45-year-old Chinese woman, was arrested by police in Nanjing after the discovery of her insurance fraud scheme.

To obtain compensation after delayed or cancelled flights, Li used 20 different identities, in addition to her own, to underwrite nearly 900 travel insurance policies between 2015 and 2019.

The amount of cancellation compensations received totalled 423 000 USD. Li has not been on a plane, however, because of her experience in travel services, she selectively underwrote insurance for flights that she knew would be cancelled or delayed.