Authored on: May 23, 2014
Claims fraud is known to be a debilitating problem for the profitability of insurance companies (Aite Group estimates claims fraud in the P&C industry alone costs the US insurance industry $64 billion a year) - but what about for the general public? The Insurance Research Council points out that up to one in four Americans sees it as acceptable to exaggerate their insurance claims to compensate themselves for previous claim-free years of premium payments or to cover the deductibles on their claims. Insurance is a grudge purchase, but one which presents significant possibilities for opportunistic gain. One in ten people sees claims fraud as a victimless crime. In the traditional fraud triangle, claims fraud is one of the most trivial opportunities to achieve financial gain; it is easily rationalized by the general public as harming only blue chip companies who can afford to lose a few hundred dollars, and has a clear motivation - to reclaim money spent on previous premiums.
Download this 10-minute whitepaper to learn how counter fraud technology solutions increasingly need to support four stages of operations - all of which support the goal of treating customers fairly both directly and indirectly.