Insurance Industry comments re insurance fraud

11th May 2005

Press Release: Insurance Industry Councils comments re migrant insurance Fraud

The New Zealand Federation of Ethnic Councils is concerned at the recent statement made by the Insurance Council that a large number of insurance frauds are being committed by migrants. We are concerned for a number of reasons.

First, how does the Council know this, what are their statistics? It would be helpful to have a comparison between non-migrant fraud and migrant fraud. This would identify if migrant fraud is so much higher than non-migrant fraud, which is what the statement appears to indicate. Police crime statistics however seem to indicate the opposite, in that migrants are less represented in crime statistics in New Zealand in comparison with other groups.

Secondly, are these new migrants or those New Zealand citizens who identity as “ethnic” on the forms they complete? This is a very important distinction. Many New Zealand citizens have an ethnic identification other than European, even though they may have been born in New Zealand, or in fact may be 2nd and 3rd generation New Zealanders – does the Insurance Council believe these people are migrants. If this is the case, then the total population of New Zealand falls into the migrant category.

Thirdly I would like to know why the Insurance Council has not approached the New Zealand Federation of Ethnic Councils and asked for their assistance in this area, if indeed it is such a problem. They have made no contact with us and we are in a very good position to assist. The Federation is unsure as to the motive to go public, rather than try and find solutions in consultation with key Non-Government Organisations. We sincerely hope this is not a case of political grandstanding. Such grandstanding does much to damage the confidence and integration of new migrants into their chosen country. It is very damaging.

The Federation is concerned with the lack of social responsibility in the insurance industry. In the past, our observation has been, that the Insurance Council in dealing with matters of national consequences such as fire safety, flood damage and leaky buildings has dealt with the issues more seriously and conscientiously clearly because its critics and evaluators are knowledgeable anmd often well resourced to conduct research to counter the Council’s views. On this occasion, we are disappointed that the Council has failed to demonstrate due diligence, a lack of understanding of settlement of migrants, the positive economic contributions by this community as a whole to the Insurance Industry.

The Federation does not condone fraud in anyway, but it also cannot condone unsubstantiated statements that highlight one group of our population as “the problem’. In short, what we see is an industry that is unprepared for the changing demographics of New Zealand. Given this we are seriously concerned that discriminatory business practices are on the cards in this industry.

ENDS

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