Insurance companies in Ghana have been advised to adopt comprehensive fraud prevention strategies to protect against the growing threat of cyberattacks and other financial crimes.
Dr. Kwabena Situ, Partner, Assurance at Deloitte Ghana, made the call during a webinar organised by Deloitte on the theme “Insurance Fraud Awareness and Mitigation.”
He emphasised that the increasing complexity of the business environment requires insurance firms to be proactive in identifying and closing gaps that expose them to fraud.
“The environment is getting more complex by the day, so there is a need to have effective strategies in place,” Dr. Situ said.
“Insurance companies must conduct gap assessments and embrace policies that are resilient enough to withstand both internal and external threats, especially cybersecurity,” he said.
He pointed out that fraud continues to drain significant resources from companies, funds that could otherwise be invested in growth and innovation.
In Ghana, he noted, approximately 5.0% of company revenue is lost to occupational fraud, highlighting the urgency for firms to tackle both internal and external vulnerabilities.
“Fraud is a canker that businesses must deal with squarely. Internal fraud can often be addressed through internal controls, but the more dangerous threat is external fraud, particularly from cyberattacks,” he warned.
Dr. Situ also encouraged insurance companies to leverage the tools and expertise provided by Deloitte in combating financial crimes.
He stressed that regulatory alignment, technology adoption, and continuous staff training should be part of a holistic fraud mitigation plan.
Also speaking at the event, Babajide Okunlola, Associate Director, Forensic at Deloitte Nigeria, highlighted the evolving tactics of fraudsters who increasingly use sophisticated technology to breach systems.
“Today’s fraudsters are using technology to their advantage. Insurance companies must also start thinking about how to use the same technology like AI to counter fraud risks,” Okunlola said.
He added that partnerships with regulators will be key in improving transaction verification and identity management systems within the insurance sector.
With increasing digitisation of insurance operations and services, the panel agreed that fraud prevention must be integrated into every level of operations, from policy underwriting to claims management while also promoting collaboration with regulatory authorities and cybersecurity experts.
“As technology becomes central to how we do business, it must also become central to how we protect our businesses,” Dr. Situ added.
