Dammam: Najm for Insurance Services held a workshop on Wednesday, February 7th, on ‘Combating Insurance Fraud in the Motor Sector’, under the sponsorship of the Insurance Authority, and in cooperation with the General Department of Traffic. The workshop was held at the Dana Rayhaan Hotel in Dammam.
The workshop discussed means of combating fraud and illicit gain in motor insurance. It also aimed to raise awareness on the negative effects of fraud, which are reflected on the economic performance in general and on all stakeholders, in particular. The participants also discussed through a panel discussion, the damages resulting from fraudulent operations, solutions to resolve this financial crimes, and the efforts to activate these solutions, which are key to benefitting society.
This workshop was held as part of a series of workshops that Najm plans to organize across several cities of the Kingdom, including Riyadh and Jeddah, in cooperation with its strategic partners from insurance companies. Additionally, this workshop is aligned with Najm’s efforts to combat fraud, which is one of the main challenges facing the Saudi insurance industry, and shed light on the negative repercussions on customers, insurance companies and service providers.
Commenting on this occasion, the CEO of Najm, Mr. Mohammed Y. Al Shehri, said: “Najm’s strategy aims to enhance its leading role in supporting the Kingdom’s motor insurance sector, and to maximize its positive economic impact, through initiatives and services that consolidate the concepts of integrity, credibility, and safety. Insurance fraud is considered one of the most important issues that Najm and other authorities are working towards combatting, by strengthening their capabilities on four key elements: human capital, technical systems, regulatory procedures, and awareness.”
In a speech he delivered during the workshop, the representative of the Insurance Authority, Mr. Ahmed Alqasir, Executive Director of Insurance Supervision General Department, and the Acting- Director of Legal Affairs and Enforcement, expressed his gratitude to the General Department of Traffic for their attendance and his appreciation to Najm for organizing the workshop. He spoke about the important role of the Insurance Authority and its efforts to combat fraud in vehicle insurance claims, which will be followed by fighting fraud in other insurance lines of business.
Alqasir stressed the importance of cooperating with the relevant authorities, as well as the need for insurance companies to overcome key challenges and help reduce the negative impact on the insurance sector and the national economy. He also drew attention to the fact that the Insurance Authority is taking the necessary measures to develop advanced systems to detect fraudulent indicators and patterns, and come up with solutions to confront them. This will in turn protect the rights of beneficiaries and the policyholders, as well as support the Kingdom’s financial stability and contribute to sustainable economic growth.
The workshop was attended and participated by a number of senior leaders and Excellencies from the General Department of Traffic and the Eastern Region Traffic Department who contributed by highlighting their role in protecting society and facilitating procedures of traffic accidents within the framework of a system that ensures all parties’ rights. The workshop also provided an opportunity to exchange knowledge and support joint efforts between the General Department of Traffic and the insurance sector.
During the workshop, the Media Spokesman for Insurance Industry, Mr. Adel Issa, shed light on the negative effects of fraud on the motor insurance market, and the large losses that insurance companies are exposed to due to fraud, drawing attention to various losses that insurance sector faces due to fraud. The examples of this are the payment of undeserved compensation for false incidents, the incurring of significant technical and administrative expenses to develop fraudulent detection systems and training work teams, in addition to the costs of seeking judicial expertise to deal with judicial cases brought before the courts.
The Vice President of the Compliance and Risk Sectors at Najm, Mr. Abdulmajeed A. Al Rebdi, delivered a presentation on dealing with fraud in motor insurance, and highlighted the company’s efforts to combat fraud. He asserted that Najm leads the anti-fraud efforts to provide optimum levels of safety and protection. This is implemented through the study of suspicious cases, and the collecting evidences to help insurance companies make the right decisions. Other key initiatives involve working on governance and implementing procedures and internal controls to prevent and detect fraud, as well as conducting analytical studies based on multiple sources of information and data analysis to develop appropriate fraud detection indicators.
Al-Rebdi emphasized Najm’s role in launching campaigns to raise awareness on combating fraud and clarifying its effects, risks, and ways to prevent it. The workshop also supported the efforts that Najm is undertaking in cooperating with regulatory and supervisory authorities.
Najm for Insurance Services is a closed, unlisted Saudi joint stock company, established in 2007 with the aim of strengthening the role of the motor insurance sector in the Kingdom. Najm provides a range of solutions and insurance services to citizens, residents, and visitors in 44 cities around the Kingdom, with an experienced and skilled Saudi workforce.