Fraud within the health insurance sector

Earlier this year, top insurer Norwich Union urged people looking for health insurance to disclose all, or risk non-payment on their policies . Since this broadcast, there have been numerous efforts aimed at raising awareness about the importance of disclosure for protection insurance applications. According to recent research, many people are unfortunately still willing to risk a pay-out to potentially save money on their health insurance premiums.

The figures come from the sister title of the magazine Health Insurance, The Review. They found that 10 per cent of health insurance applicants over the age of 40 commit acts of non-disclosure. Furthermore, 5 per cent of applicants who declare themselves to be non-smokers show traces of nicotine when tested.

The numbers were revealed by the Computer Sciences Corporation, who also showed that when questioned 6 per cent of all applicants would intentionally not disclose things they thought would get them cheaper cover . Furthermore, 30 per cent of new applications contain some form of non-disclosure.

The findings also indicate that over 50 per cent of insurers in the UK carry out non-routine, non-disclosure investigations. As Norwich Union urged: do not risk a pay out, always disclose all your details.