An Assessment of the Impact of Innovation on Insurance Fraud Management in Zimbabwe

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue II, February 2021 | ISSN 2454–6186

An Assessment of the Impact of Innovation on Insurance Fraud Management in Zimbabwe

Maryliene Chipo Mujakachi, MBA, Dr Fainos Chinjova Ph.D
National University of Science and Technology; Corner Gwanda Road and Cecil Avenue; Bulawayo; Zimbabwe

Abstract: This study sought to assess the impact of innovation on insurance fraud management in Zimbabwe. The study used a pragmatic philosophy because the explanatory variables chosen by the researchers are best explained using the strengths of both qualitative and quantitative approaches with the use of statistical inferences. The population of this study consisted of all the employees of insurance companies in Zimbabwe and the population size was estimated to be around 3000. The sampling method used in this study was purposive sampling since the researchers used subjective judgment drawn from practice to come up with a sample size of 180. The sample size was considered enough to make inferences about the population. The study found out that block chain creates interlinked and independent information, its information is true, it validates transactions and the information stored in it is irreversible. Moreover, it was found out that the adoption of artificial intelligence was going to be a critical move towards the reduction of the rate of over exaggerated claims. The study also found out that insurance companies’ mobile application would be highly effective because mobile technologies ensure that customers have factual and reliable information, they ensure an effective collection of customer data, they are helpful in educating customers about insurance fraud and they notify clients of their deadline. The study recommends that insurance companies take a leading role in educating its clients about insurance fraud and its implications. Moreover, insurance companies should train and develop their employees on fraud management and deploy a variety of technologies to reduce the incidence of fraud.

Key Words: Artificial Intelligence; Fraud Management

I. BACKGROUND OF THE STUDY

Innovation is the application of ideas that are novel and useful. It is about staying relevant. Businesses are in a time of unprecedented change. In that case therefore companies need to adapt and evolve to meet the ever-changing needs of their constituents thus being innovative. The goal of innovation is to reinvigorate the business, create new value and boost growth and productivity. According to Leeds, (2018) there are several types of technologies that are designed to provide a range of benefits to insurers and policy holders and these are not limited to mobile applications, machine learning, big data, the internet, drones, telematics and the block chain ledger. The study therefore employed mobile application, machine learning, telematics and the block chain ledger as variables of innovation.

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