The Slovenia Insurance Supervision Agency, together with the Slovenian Insurance Association, published a public-awareness article on insurance fraud, describing how frauds are typically carried out and detected and the consequences for policyholders who misrepresent claims. The article cites annual global insurance fraud of around USD 40bn and estimates that Slovenia’s insurance sector loses EUR 100m–200m each year, with the greatest incidence in motor insurance but also cases in property, accident, marine and travel insurance. It outlines common patterns including misreporting the circumstances of a loss, insuring pre-existing damage, staged accidents and forged documentation, and notes routine cooperation between insurers, police and detectives. The piece also references the FRODO fraud-detection system, used by six of the largest insurers and based on artificial intelligence, which has detected several thousand frauds. It sets out potential criminal penalties of up to one year’s imprisonment for attempted fraud, up to three years where fraud has been committed through a false claim, and up to ten years where the offence is committed as part of a criminal group. Insurers may also refuse payment, cancel cover, restrict or prohibit further insurance, increase premiums, withdraw discounts and charge costs, alongside recovery of any unlawful gain.
Slovenia Insurance Supervision Agency 2025-03-18
Slovenia Insurance Supervision Agency highlights insurance fraud schemes, detection tools and criminal penalties
The Slovenia Insurance Supervision Agency and the Slovenian Insurance Association published an article on insurance fraud, highlighting common patterns and detection methods, including the AI-based FRODO system. The article estimates Slovenia's insurance sector loses EUR 100m–200m annually, with motor insurance most affected. It outlines potential penalties for fraud, including imprisonment and insurer actions such as refusing payment and increasing premiums.