Coming in all shapes and sizes, insurance fraud negatively impacts individuals, communities, other policy holders, and of course insurance companies. Too often, an excuse used by fraudsters to justify their deviant behavior is that it is a victimless crime. For other honest policyholders, the increased premiums is the most direct impact. Ultimately, prevention is the best way to address insurance fraud. It is not easy when it comes to prosecution and resulting penalties for fraudulent activities. With this in mind, we at Advanced Private Investigator & Security of Miami, FL would like to share tips for insurance companies to minimize fraud.
Be Hard on Fraud
A zero-tolerance policy for fraud needs to be demonstrated by insurance companies, though this is easier said than done. In order to weed out the fraud, it is impossible and unrealistic to investigate every minor incident. Due to lengthy investigations for a simple claim, there are not enough resources for this, and honest policyholders would grow impatient waiting for their settlements. To compensate for poor service and long waiting times, they may even grow so discontent that they feel inclined to start padding their own claims. To deter future fraudulent activities, it is important for insurance companies to be able to detect fraud scenarios and make an example of those that are caught.
Handle Insurance Claims & Underwriting Efficiently
You need to be able to detect fraud in order to be tough on it. A well-thought-out underwriting and claims management process is necessary. Understanding, identifying, and assessing where the top internal and external vulnerabilities are within the company is where it begins. A flagging system can be created, updated, and analyzed for optimization possibilities on a continuous basis once the soft spots are established. Everybody in the insurance company, from top and mid-level managers to claims handlers, the finance department and sales representatives, need to be onboard with making the fight against fraud a priority. Otherwise, even the simplest vulnerability assessment and flagging systems will fail. Without the support of IT, there is just too much data within underwriting and claims scenarios to manually process and make fast, informed and intelligent decisions.
Improve the Claims & Underwriting Process
Simply by purchasing the most advanced IT solution and calling it digitalization will not improve poor processes. Use today’s technology as a decision support system on a claim-by-claim basis as it is important to first have clear processes documented with assigned cross-functional responsibilities.
Private Investigator & Security Services in Greater Miami, Sunny Isles, Hialeah, Fort Lauderdale, Pembroke Pines, Hollywood, Miramar, Boca Raton, West Palm Beach & Miami Gardens Florida
In order to deter future schemes and attacks, insurance companies need to be tough on fraud. Efficient and effective processes need to be in place, supported with today’s available technology. Having these systems in place allows insurance companies the ability to identify if a claim can be fast-tracked, run a normal course or requires an investigation. Due to a company’s strong capability to detect and prevent even the most elaborate fraud schemes, claims processes can be sped up, customers will in turn be happy, and fraudsters will be deterred. Call Advanced Private Investigator & Security of Miami, FL to assist in your insurance company’s fraud investigations today!
