There are a few consequences of insurance fraud.
People who commit insurance fraud will have their claim declined, and policies cancelled. If you've had a claim declined due to fraud, it may be difficult to get insurance cover in the future. Most New Zealand insurers record claims in the Insurance Claims Register (ICR), and can identify people with declined claims. Not being able to get insurance cover can lead to a potential inability to have a mortgage or loan where insurance cover is a requirement.
As premiums are based on the frequency and cost of claims, insurance fraud can also mean that insurers, and ultimately all customers, have to bear the cost of fraudulent claims.