The impact of insurance fraud on the global economy

Tiwari, Pradeep K. (2025) The impact of insurance fraud on the global economy. Insurance Law Journal, 34 (1). pp. 1-17. ISSN 1030-2379

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Abstract

Insurance fraud is one of the most pressing socio-economic issues of this era. Insurance is an arrangement to provide financial compensation to individuals and businesses for the effects of misfortune, but fraudsters make a fortune in the process. This paper aims to investigate the causes of insurance fraud and suggest ways to fight against dishonest behaviour. A qualitative research methodology was adopted to collect data. The paper concludes that the major causes of insurance fraud are financial stress, greed, a sense of entitlement, poor remuneration, weak internal control, and lack of awareness and training. Due diligence to recruit staff, regular staff training, rotation of duties, effective internal control, and stringent claims handling procedures are some of the key factors to maintain orderly functioning of the industry and fight against insurance fraud. Unless insurance fraudsters are severely punished under the criminal justice system, the innocent consumers will continue to suffer, and the economy, at large.

Item Type:	Journal Article
Subjects:	H Social Sciences > HG Finance K Law > K Law (General)
Divisions:	School of Law and Social Sciences (SoLaSS)
Depositing User:	Ms Shalni Sanjana
Date Deposited:	09 Mar 2026 03:09
Last Modified:	09 Mar 2026 03:09
URI:	https://repository.usp.ac.fj/id/eprint/15288

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