GE accused of hiding billions in losses in its insurance business

General Electric | August 19, 2019

An accountant who gained fame for blowing the whistle on Bernie Madoff’s Ponzi scheme has accused General Electric of hiding nearly $40 billion in losses in its long-term care insurance business. General Electric’s stock plunged more than 11% Thursday after forensic accountant Harry Markopolos released a report accusing the conglomerate of fraud. Markopolos said that the alleged books-cooking was the largest case of accounting fraud he and his team had ever investigated, CNN reported. “In fact, GE’s $38 billion in accounting fraud amounts to over 40% of GE’s market capitalization, making it far more serious than either the Enron or WorldCom accounting frauds,” Markopolos wrote in the report. Enron’s fraud scandal bankrupted the energy company in 2001, while telecom WorldCom was bankrupted in 2002 after its fraud was revealed, CNN reported.

Spotlight

The underwriting process is critical for insurers. But manual processes, spreadsheets, and data from disparate silos slow down the process and make audit trails a nightmare. All that means a lot of stress on systems and employees, plus a less-than-ideal customer experience.

Fortunately, it doesn’t have to be that way.

With the P&C Underwriter Workbench from Mendix and Capgemini, you can optimize and digitize underwriting, leading to efficiency, effectiveness, and increased productivity.

Connect with your core systems and data sources to make data-driven decisions. Customize every aspect to make an offering that’s uniquely yours.

Spotlight

The underwriting process is critical for insurers. But manual processes, spreadsheets, and data from disparate silos slow down the process and make audit trails a nightmare. All that means a lot of stress on systems and employees, plus a less-than-ideal customer experience.

Fortunately, it doesn’t have to be that way.

With the P&C Underwriter Workbench from Mendix and Capgemini, you can optimize and digitize underwriting, leading to efficiency, effectiveness, and increased productivity.

Connect with your core systems and data sources to make data-driven decisions. Customize every aspect to make an offering that’s uniquely yours.

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