There are challenges in the global life and health insurance industry as well as the travel insurance industry which necessitated the establishment of this platform. They are as follows:
· There is a huge challenge to the global life and health insurance industry as well as the travel insurance industry to curtail fraudulent claims which have grown to pandemic proportions. There are industry practitioners who are unaware of the widespread fraud playing out today worldwide and thus as Claims Examiners they okay payment of outright fraudulent claims. Some industry practitioners believe such local and international claims amount to over US$5 trillion per annum.
· Some insurance companies, travel insurance companies and Health Maintenance Offices (HMOs) engage independent investigative agencies which are few and are mostly staffed by inexperienced investigators on fraud parameters.
Some of the practitioners opt to pay suspicious claims because they believe there are no knowledgeable and trained professional investigators worldwide to utilize to investigate the claims and determine the facts. They do not want shoddy investigations that would not obviate their suspicions and add to their expenditure on the claims.
· Some insurance companies have owing to their inability to stem the tide of fraudulent claims been forced to discontinue from operations and exit the business altogether.
Some other companies still in business choose to confine their operations to domestic or local market and do not grant global cover.