Insurance industry takes ₹10,000 crore hit each year on frauds: Report

A new BCG-Medi Assist report highlights how fraud, waste, and abuse are eroding insurer margins, inflating premiums and weakening sectoral RoE, with mid-ticket claims driving most leakages

The insurance industry has been witnessing ₹8,000-10,000 crore leak in annual claim payouts due to Fraud, Waste, and Abuse (FWA), with most of it being concentrated in the mid-ticket claim segment — between claim value of ₹50,000 and ₹2.5 lakh — according to BCG-Medi Assist Report.

 

Every year, 8-10 per cent of total claim payouts are estimated to be lost to FWA, translating to leakages amounting to approximately ₹8,000-10,000 crore annually. According to the report, if the industry curbs these losses, insurers can directly preserve profitability, recovering margins that are currently eroded by avoidable inefficiencies.

 

Fraud refers to intentional deception