The insurance firm internal auditor as fraud-buster

Internal fraud is a significant problem faced by property and casualty insurance companies. Asset misappropriation committed by employees accounts for more than four out of five offenses. The insurance company internal auditor is often in the best position to detect, prevent, and deter employee fraud. This article outlines the types of fraud that occur in the property and casualty insurance industry, the fraud risks and signals that insurance firm internal auditors should recognize, the assistance that insurance internal auditors can provide for independent auditors, and the positive steps insurance internal auditors can take to prevent, deter, detect, and report fraud.