Detecting insurance fraud and protecting your company

On Behalf of | Aug 30, 2021 | Insurance |

Dealing with a large number of customers and sifting through each of their claims can quickly become exhausting. Due to the monotony of it all, you may not notice fraudulent claims until it is too late.

Protecting the integrity of your organization requires you to know the warning signs of fraud. Your ability to recognize phony claims in the early stages can prevent costly losses.

Diversify assessment methods

A shocking number of fraudulent claims get through each year and cost consumers and insurers a substantial price. In fact, according to the Federal Bureau of Investigation, estimated costs of insurance fraud in the United States exceed $40 billion each year.

Using only one strategy to assess the validity of a claim could cause complacency over time. You can train your adjusters to implement various tactics for reviewing claims to accurately detect fraud. Consider the evidence recorded from each claim to corroborate stories. Combining technology with other detection tools can give you the reassurance that you have covered every angle of each claim.

Analyze fraud statistics

You can compare certain claims to similar ones managed by other insurance companies. Analyze fraud statistics to identify patterns in behaviors. Knowing the warning signs of dishonest insurance claims can help you to stay on high alert.

Another tactic is to assign a score to each claim based on its fraud risk. Using data analytics, you can roughly identify how risky each claim is and based on your findings, adjust your methods for handling it. Using care and staying alert as you comb through each claim can help you avoid the pitfalls of insurance fraud.