Stakeholder Perceptions of Anti-Fraud Mechanisms and Their Implications in the Nepalese Insurance Sector
Journal Title: Journal of Corporate Governance, Insurance, and Risk Management - Year 2024, Vol 11, Issue 4
Abstract
Despite increasing instances of fraudulent activities within the Nepalese insurance sector being periodically revealed by government bodies, regulatory authorities, and investigative journalists, a systematic academic inquiry into this issue has remained notably absent. To address this gap, an exploratory cross-sectional quantitative investigation was conducted to examine stakeholder perceptions regarding the effectiveness of fraud control mechanisms and the primary repercussions of insurance fraud on insurers in Nepal. Data were collected through a structured questionnaire administered to 200 respondents including insurance employees, policyholders, agents, insurance technicians, surveyors, and domain experts within the Pokhara Valley, selected via convenience sampling. Analytical procedures included descriptive statistics, Mann–Whitney U tests, and Kruskal–Wallis H tests. It was identified that robust legal enforcement, particularly the enactment and strict implementation of anti-fraud legislation, was perceived as the most effective control strategy. Institutional reforms, such as the establishment of a dedicated Fraud Investigation Bureau and a centralized Insurance Information Centre, were also emphasized as critical to improving the detection and monitoring of fraudulent activities. Although technology-enabled solutions, including AI-driven digital claim management and anomaly detection systems, were acknowledged for their importance, they were ranked marginally lower in perceived efficacy compared to legal and institutional measures. Fraud was reported to exert significant detrimental effects on insurers, most prominently through the erosion of public trust and social credibility. Additional impacts included claim settlement delays, reduced profitability, destabilization of share prices, and increased insurance premiums, collectively threatening both the short-term financial performance and long-term sustainability of the sector. To safeguard stakeholder interests and ensure sectoral stability, a multi-pronged anti-fraud framework has been recommended. Main recommendations include strengthening the legal framework with stringent penalties, developing a centralised fraud registry for inter-insurer information sharing, enhancing underwriting and claims verification procedures, and investing in intelligent fraud detection technologies. These findings offer empirical insights that can guide policy reform and institutional development in emerging insurance markets.
Authors and Affiliations
Rabindra Ghimire, Anubhuti Ghimire, Vilas Waikar
Keywords
Related Articles
- EP ID EP765184
- DOI https://doi.org/10.56578/jcgirm110404
- Views 2
- Downloads 0
Formation and Development of Education in Nakhchivan (End of the XIX Century Before the Early XX Century)
The article discusses the development of school and pedagogical thought in Nakhchivan before and during autonomy. It has been established that, in Nakhchivan, which is an integral part of Azerbaijan, they always pay spec...
Evaluating Economic Crisis Theory: A Comprehensive Examination of the Aftalion Methodology
The Aftalion methodology of economic crisis theory presents a complex and comprehensive understanding of economic crises, the exploration of which is riddled with nuanced considerations and varied perspectives. Primarily...
Multiple Directorships in Maltese Listed Entities: Implications, Determinants, and Governance Strategies
The phenomenon of multiple directorships (MDs) within Boards of Directors of listed entities has garnered increasing attention due to its implications on corporate governance (CG) effectiveness. This study examines the p...
Overcoming Barriers to E-Accounting Adoption: A Survey of Accountants in Turkey
In recent years, advances in digital technology have rapidly permeated various business sectors and functions, leading to the digital transformation of numerous traditional paper-based accounting processes. Consequently,...
Corporate Digital Transformation and Information Disclosure Quality: An Empirical Study from the Perspective of Information Effect
Based on panel data of A-share listed companies in China from 2015 to 2023, this study empirically examines the impact of corporate digital transformation on the quality of information disclosure, focusing on the underly...