Polish insurance database to limit PLN 1.8 billion annual fraud

The Polish Financial Supervision Authority (KNF) urged insurers to create a database to help reduce an estimated annual insurance fraud of PLN 1.8 bn.

“Insurers should create a database which pools information about client claims experience, fraud and insurance scams of any kind,” KNF head, Andrzej Jakubiak, told Polish daily, Dziennik May 13.

One of the first steps identified by the KNF, required to curb fraud, would be for insurers to have access to driver and vehicle databases, which see the largest number of claims. Access to the individual identification database (PESEL) would also allow tackling fraud more decisively, and at a considerably smaller cost.

Clients who are red-flagged would have to look for insurers who specialise in dealing with ‘difficult’ clientele. Experts say that the very existence of a database would be a likely deterrent to numerous fraudsters.

According to the KNF, the database could function as part of the Polish Insurance Association. It would, however, require a relatively large outlay of funds, and cooperation among Poland’s insurers.