10 September 2024
Under the Sponsorship and supervision of the Insurance Authority, Najm
for Insurance Services unveiled its ongoing efforts to enhance insurance fraud
prevention and develop new indicators for assessing the legitimacy of traffic
accidents and detecting fraud. This announcement was made during the
Anti-Insurance Fraud Workshop for the Vehicle Sector organized by Najm last
week at the King Abdulaziz Center for National Dialogue in Riyadh. The workshop
was held under the sponsorship of the Insurance Authority in collaboration with
the General Department of Traffic and was attended by leaders from insurance
companies alongside Najm. Najm's upgrading fraud detection indicators for
traffic accidents arise from discussions and recommendations gathered during
three workshops held in Khobar, Jeddah, and Riyadh throughout 2024, in
collaboration with Najm's strategic partners, aimed at combating fraud in the
vehicle insurance sector.
As a result, seven key indicators were developed, covering factors such
as the time of the accident, the driver, accident circumstances, accident
documentation, damage discrepancies, pre-existing damage, and evidence at the
accident scene.
The upgrades also included records of parties and vehicles in Najm's
database, which helped to address the validity of suspecting accidents. The
direct discussions among workshop parties were instrumental in upgrading all
patterns of indicators and the key criteria for detecting fraud in traffic
accidents, contributing to developing fraud detection mechanisms and enhancing
fair and transparent practices.
A delegation from the Insurance Authority, led by Mr. Ahmed Al-Qusair,
Executive Director of Supervision, participated in the workshop. In his speech,
Al-Qusair emphasized the Authority's commitment to supporting efforts that
promote fraud-free insurance practices by developing fraud detection indicators
and establishing controls that ensure cooperation among all parties to combat
this negative phenomenon, which poses a significant challenge to the insurance
industry in Saudi Arabia. The aim is to mitigate its negative effects on
policyholders, insurance companies, and service providers. Al-Qusair also
called for the standardization of these indicators, alongside regular upgrades,
to ensure alignment of procedures across all regions of the Kingdom, as well as
consistency in claims settlement processes among insurance companies. This will
play a key role in preserving the rights of policyholders and beneficiaries of
insurance coverage.
Mr Mohammed Y. Al Shehri, CEO of Najm, also expressed his appreciation
for the support provided by the Insurance Authority to insurance companies,
including Najm's initiatives, as well as the efforts of the General Department
of Traffic during their participation in the workshops organized by Najm in
2024. These efforts contributed to developing field monitoring procedures and
post-monitoring verification processes, as well as developing key standards and
patterns to detect fraud in traffic accidents.
The final workshop held in Riyadh was attended by senior officials from
the General Department of Traffic, who expressed their appreciation for the
cooperation between the traffic department and the insurance sector. They also
commended Najm's efforts in handling traffic accidents with the highest levels
of integrity and transparency, ensuring all parties' rights and community
safety. The workshop also featured a presentation by Mr. Abdulmajeed Al Rebdi,
Vice President of Compliance and Acting Risk Management at Najm.
In his presentation, he addressed methods for combating fraud and
illicit gain in vehicle insurance, as well as the importance of raising
awareness about the negative economic impacts of these activities on the
insurance process and its stakeholders. The attendees engaged in an open
discussion as part of the workshop's schedule, discussing the damages resulting
from fraud activities and the mechanisms for implementing proposed solutions to
tackle this financial crime. The focus was on coordinating efforts among all
parties to activate these solutions to benefit the community as a whole.
Najm for Insurance Services is a closed Saudi joint-stock company
founded in 2007 (1428 AH). It adopted its main objective of enhancing the
vehicle insurance sector in the Kingdom. Najm provides a wide range of
insurance solutions and services to citizens, residents, and visitors in over
40 cities and governorates across the Kingdom, with a workforce of experienced
and skilled Saudis making up 98% of Najm's total workforce.