An empirical evaluation of existing fraud risk management practices in Nigerian insurance businesses: A focus on motor insurance fraud.

Abstract

This thesis presents an empirical evaluation of fraud risk management practices in Nigerian insurance businesses, focusing specifically on motor insurance fraud. The research comprises three interconnected papers aimed at comprehensively understanding and addressing the challenges posed by fraudulent claims in the Nigerian motor insurance industry. The first paper assesses experts' perceptions of motor insurance fraud in Nigeria, which point towards a problematic level of fraud that could significantly impact the insurers' solvency. The second paper analyses the factors contributing to fraudulent claims, highlighting the prevalence of internal, external, and connivance fraud in the Nigerian insurance market. It also identifies shortcomings in current fraud control measures, and recommendations are made for improvements that could deter fraud occurrences. The third paper evaluates the effectiveness of anti-fraud strategies in Nigerian motor insurance companies. Surprisingly, while these strategies are perceived as effective by industry professionals, they do not wholly correlate with reductions in fraudulent claims (i.e., preventive and detective strategies), indicating there is a gap between perception and reality. Recommendations in the third paper include continuous policy reviews, enhanced staff training, flexible anti-fraud measures, holistic risk assessment, and increased legislative support. Overall, this research contributes to bridging the gap between theoretical concepts and practical challenges in managing motor insurance fraud in Nigeria, with potential implications for enhancing fraud risk management practices both locally and globally.

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Identifiers

ORCID for Olatokunbo Sunday Shoyemi: orcid.org/0000-0002-9196-9997

ORCID for Mario Brito: orcid.org/0000-0002-1779-4535

ORCID for Ian Dawson: orcid.org/0000-0003-0555-9682

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