Najm Reveals Updated Criteria and Indicators for Detecting Insurance Fraud in Traffic Accidents

Najm for Insurance Services has announced its ongoing efforts to enhance insurance fraud prevention and develop new indicators for assessing the legitimacy of traffic accidents and detecting fraud. This announcement was made during the Anti-Insurance Fraud Workshop organized by Najm last week at the King Abdulaziz Center for National Dialogue in Riyadh. The workshop was held under the patronage of the Insurance Authority, in collaboration with the General Department of Traffic, and was attended by leaders from insurance companies, alongside Najm.

Najm's updated fraud detection indicators for traffic accidents stem from discussions and recommendations gathered during three workshops held in Khobar, Jeddah, and Riyadh, throughout 2024. These were conducted in collaboration with Najm’s strategic partners, and focused on combating fraud in the vehicle insurance sector. As a result, seven key indicators were developed, covering factors such as the time of the accident, the driver, accident circumstances, accident documentation, damage discrepancies, pre-existing damage, and evidence at the accident scene. The updates also include records of parties and vehicles in Najm's database, which help in addressing the legitimacy of accidents.

The direct discussions among workshops participants were instrumental in developing these indicators and the main criteria for detecting fraud in traffic accidents and contributing to the advancement of fraud detection mechanisms and the enhancement of fair and transparent practices.

A delegation from the Insurance Authority, led by Mr. Ahmed Al-Qusair, Executive Director of Supervision, participated in the workshop. In his speech, Al-Qusair emphasized the Authority's commitment to supporting efforts that promote fraud-free insurance practices. This is being achieved through the development of fraud detection indicators and the establishment of controls that ensure cooperation among all parties to combat this negative phenomenon, which poses a significant challenge to the insurance industry in Saudi Arabia. The aim is to mitigate its negative effects on policyholders, insurance companies, and service providers. 

Al-Qusair also called for the standardization of these indicators, alongside regular updates, to ensure alignment of procedures across all regions of the Kingdom, and consistency in claims settlement processes among insurance companies. This will play a key role in preserving the rights of policyholders and beneficiaries of insurance coverage.

Mr. Mohammed Y. Al Shehri, CEO of Najm, also expressed his appreciation for the support provided by the Insurance Authority to insurance companies, including Najm's initiatives, as well as the efforts of the General Department of Traffic during their participation in the workshops organized by Najm in 2024. These efforts contributed to the development of field monitoring procedures and post-monitoring verification processes, as well as the development of key standards and patterns to detect fraud in traffic accidents.

“Najm leads the efforts to combat insurance fraud by ensuring the highest levels of safety and protection through the examination of suspicious cases and the collection of evidence to assist our insurance partners in decision-making claims assessment. We are committed to implementing internal procedures and controls to prevent and detect fraud. Additionally, we conduct analytical studies based on various data sources and analyze accumulated insurance information and records of parties and vehicles as a preventive action to establish indicators that detect fraudulent activities and protect the rights of all involved.”

The final workshop held in Riyadh was attended by senior officials from the General Department of Traffic, who expressed their appreciation for the cooperation between the traffic department and the insurance sector. They also commended Najm's efforts in handling traffic accidents with the highest levels of integrity and transparency, ensuring the rights of all parties and ensuring community safety.

The workshop also featured a presentation by Mr. Abdulmajeed Al Rebdi, Vice President of Compliance and Acting Risk Management at Najm. In his presentation, he addressed methods for combating fraud and illicit gain in vehicle insurance, as well as the importance of raising awareness about the negative economic impacts of these activities on the insurance process and its stakeholders. The attendees engaged in an open discussion session as part of the workshop’s agenda, discussing the damages resulting from fraudulent activities and the mechanisms for implementing proposed solutions to tackle financial crimes. The focus was on coordinating efforts among all parties to activate these solutions in a way that benefits the community as a whole.

Najm for Insurance Services is a closed Saudi joint-stock company, founded in 2007 (1428 AH). It adopted its main objectives to enhance the vehicle insurance sector in the Kingdom. Najm provides a wide range of insurance solutions and services to citizens, residents, and visitors in over 40 cities and governorates across the Kingdom, with a workforce of experienced and skilled Saudis making up 98% of Najm’s total workforce.