Deloitte urges insurance firms to build strong fraud defenses against cyber threats

The Partner, Assurance at Deloitte Ghana, Dr. Kwabena Situ, has called on insurance companies to develop a comprehensive fraud strategy capable of resisting all forms of attacks, especially cyber-related threats.

He said insurance firms must put in place effective policies that can stand up to any risk, adding that they should also take advantage of the tools and support services offered by Deloitte.

“The business environment is getting complex daily, so there is a need to have strategies in place. There is also the need to have a gap assessment. These are important policies that insurance firms must embrace,” Dr. Situ said during a webinar organised by Deloitte on the theme: “Insurance Fraud Awareness and Mitigation”.

He explained that fraud is a major challenge draining resources that could otherwise be used to grow businesses. 

“Fraud is something that makes companies lose lots of money. Resources that can be channeled into other areas of the businesses to grow the firms are being lost to fraud. It is a very topical issue that businesses, especially insurance firms, must start dealing with. You know Deloitte is proactive on issues pertaining to regulatory and standards and all that. This is a canker that we need to deal with…we need to deal with it squarely,” he stated.

Dr. Situ further noted that Ghana loses about 5% of its revenue to occupational hazards, and stressed the importance of dealing with both internal and external fraud. 

“In Ghana, 5.0% of revenue is lost to occupational hazards. So, this is something that needs to be dealt with because resources are going into places that do not to go. When it comes to fraud, we are dealing with either internal or external fraud. With the internal fraud, you can find a way to deal with. The most dangerous one is the one that is not close by (the external fraud) – the cybersecurity,” he added.

On his part, Babajide Okunlola, an Associate Director, Forensic at Deloitte Nigeria, said fraudsters today are using technology, and for that reason, insurance companies must also begin adopting advanced technology to prevent fraud.

“Everybody is worried about AI (Artificial Intelligence), but I can tell you that AI has its good side to deal with technology. Secondly, insurance companies must be working together with the regulators to ensure that verification and other important transactions are easily done,” he stated.

Other members of the panel included Clayton Thomopoulos, Partner, Forensic, Deloitte Africa; Niia Asafoatse Abbey, Associate Director, Forensic, Deloitte Ghana; and Sheriff Issah, Manager, Cyber Risk, Deloitte Ghana.