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Insurance Fraud and Financial Performance: The Case of Tanzania

Insurance Fraud and Financial Performance: The Case of Tanzania

Pendo Shukrani Kasoga, Amani Gration Tegambwage
Copyright: © 2023 |Pages: 23
ISBN13: 9781668450079|ISBN10: 1668450070|ISBN13 Softcover: 9781668450086|EISBN13: 9781668450093
DOI: 10.4018/978-1-6684-5007-9.ch010
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MLA

Kasoga, Pendo Shukrani, and Amani Gration Tegambwage. "Insurance Fraud and Financial Performance: The Case of Tanzania." Concepts, Cases, and Regulations in Financial Fraud and Corruption, edited by Abdul Rafay, IGI Global, 2023, pp. 236-258. https://doi.org/10.4018/978-1-6684-5007-9.ch010

APA

Kasoga, P. S. & Tegambwage, A. G. (2023). Insurance Fraud and Financial Performance: The Case of Tanzania. In A. Rafay (Ed.), Concepts, Cases, and Regulations in Financial Fraud and Corruption (pp. 236-258). IGI Global. https://doi.org/10.4018/978-1-6684-5007-9.ch010

Chicago

Kasoga, Pendo Shukrani, and Amani Gration Tegambwage. "Insurance Fraud and Financial Performance: The Case of Tanzania." In Concepts, Cases, and Regulations in Financial Fraud and Corruption, edited by Abdul Rafay, 236-258. Hershey, PA: IGI Global, 2023. https://doi.org/10.4018/978-1-6684-5007-9.ch010

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Abstract

Insurance fraud has been identified as a significant risk that undermines investor and customer trust. This chapter examines the effect of insurance fraud on the financial performance of the insurance industry of Tanzania. A standardized questionnaire was used to conduct a survey of 119 insurance companies and brokers. The data were analyzed using the multiple regression technique. The findings reveal that policyholder fraud, internal fraud, and intermediary fraud have a negative effect on the financial performance of insurance companies and brokers. Fraudulent documents, customers demanding significant compensation relative to the actual damage, a fake accident, weak internal control, employee dishonesty, poor staff compensation, ineffective supervision, and the inability to detect fraud were the causes of insurance fraud. In order to reduce insurance frauds, it is suggested to (1) thoroughly evaluate claims, (2) establish a transparent anti-fraud bureau, (3) use information technology for effective internal audit, and (4) implement a comprehensive internal fraud policy.

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