Limra partnership takes aim at life insurance, retirement plan fraud

The collaboration aims to empower insurers, retirement service providers and other stakeholders against financial crime.

Limra has entered into a strategic partnership aimed at enhancing fraud prevention in the retirement services and life insurance sectors.

Under its collaboration with the Spark Institute, a group representing retirement plan service providers and investment managers, Limra aims to address the increasingly sophisticated and prevalent threat of financial fraud affecting companies and consumers alike.

The two groups said their joint effort will kick off with a comprehensive Fraud Prevention Benchmarking Study slated for the first half of 2024. That study aims to equip industry participants with critical insights into the effectiveness of current fraud prevention strategies, as well as identify areas for enhancement and the development of best practices.

“The evolving landscape of financial fraud demands a proactive and collaborative response from the industry,” Tim Rouse, the executive director of the Spark Institute, said in a statement. “Our partnership with Limra will strengthen the industry’s collective defenses, protect the interests of our members and ensure the long-term security of retirement assets for the millions of American workers that depend on us.”

In addition to the benchmarking study, the partnership will focus on developing educational resources aimed at both plan sponsors and participants. These materials are designed to improve awareness and understanding of fraud threats, empowering stakeholders to proactively defend against them.

To help organizations in the continuing arms race against bad actors, the collaboration will also facilitate real-time information sharing through platforms like Limra’s FraudShare that allow members to stay collectively up to date on evolving fraud tactics and incidents.

The two groups are also planning to gather industry experts, thought leaders, and stakeholders at an annual Financial Services Fraud and Data Security Summit, which aims to facilitate dialogue and collaboration on combating fraud more effectively.

“We are excited to collaborate with the Spark Institute on this vital initiative,” Russell Anderson, head of financial crimes services at Limra and Loma, which was formerly the Life Office Management Association.

Under their umbrella organization LL Global, Limra and Loma represent more than 700 member companies, making them the world’s largest trade association for the insurance and related financial services industry.

“By combining our expertise and resources, we can drive meaningful change in fraud prevention, foster a culture of vigilance and ultimately protect the integrity of the retirement industry,” Anderson said.