Insurance fraud detection mechanisms are a must for insurance companies
The insurance industry has been hit by fraudulent claims over the years but has been tolerating them as business risks. However these fraudulent claims in the areas of Home Insurance, building and contents insurance and buy to let contents insurance have increased in numbers and are impacting the profitability of these companies, which has forced them to come out with a tool that will identify such frauds and prevent any such settlements. Ironically, the increased incidence of such frauds in addition to eroding profits of the companies has been responsible for causing innocent consumers to pay more for their premiums each year.
Industry experts have put the blame squarely on the recession that is forcing people to deal with their shrinking finances in this manner. However fraud supervisors at a famous insurance company have now come out with a solution that can detect frauds. This software has been hugely successful in fraud detection and the results are a testimony to its effectiveness.
Prior to the implementation of the software, the percentage of claims rejected was only 10%. Now post implementation, this has increased to a whopping 30% and since the rejected claims have been found to be fraudulent upon investigation, the success of this software has really encouraged insurance companies to put it to good use.
published:
20/03/2010 07:00:00
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