One of the thriving multi-billion dollar industry is the insurance fraud. It costs the American economy over $80 billion yearly. It is not a matter of just a few creepy consumers fleecing a few big insurance companies. It sometimes involves falsely denied payments and lost documentation by insurance companies. It also involves organized crime cartels deliberately crashing cars and even contractors over-billing. Ideally, insurance fraud causes the customers to be charged at higher premium rates, making the entire system unreasonably costly. This happens due to a few dishonest and fraudulent actors. This necessitates insurance fraud investigators. You need to know some things about insurance fraud investigations
Insurance Fraud is Common
Fraud is not as rare as people think. When people consider Life Insurance Fraud, they only think of the mega fraud deals. There are however many small deals which constitute the great majority. What is involved in this is simply inflating the claim value so as to get more from the company. An insurance investigator will finds that these are the most common cases than intentional felonies so as to get paid.
Statistical Analysis Cannot Replace Insurance Fraud Investigators
Some software can analyze data and flag potential fraudulent claims. There is, however, no way that statistical analysis will conduct the investigation. The Insurance Fraud Investigation will still be the responsibility of an insurance fraud investigator. They are specially trained for this, and they perform the duty well.
Stakeouts and Surveillance Are Useful to Catch People
Surveillance is very important since it ensures that a person's claim rhymes with his behavior. If someone is claiming an injury, it should not be hard to see the injury.
Social Media Can Catch Fraudsters
People post incriminating evidence on social media to boast of how cunning they are. They will boast of stealing from the company. It can range from photos to other compelling forms of evidence.
Investigations Get Answers
The purpose of an insurance investigation is to prove that all what is stated by parties is consistent and correct.
Insurance fraud investigations are very necessary to any insurance company as a risk management strategy. Precise investigations will bring down the cost of the policies. If fraudulent claims are made and paid, they hurt the finances of all the parties, both the insurance company and the insurance industry and the general public since it raises premiums. This is a scenario that can be avoided by involving insurance fraud investigators. Get more facts about insurance, visit https://www.britannica.com/topic/liability-insurance.