Many organizations that provide the insurance services around the globe do encounter insurance fraud which is a major setback that is affecting their services delivery. Taking into consideration the pricing pressures related to the slow economic environment, cutting back the claim payout will improve the effectiveness and reduce the cost involved. If you face the issue in a strategic point of view, the carriers overall efficiency to a large extent is based on the manner in which they treat their claim fiction. Many companies use the claim processing effectiveness to see out their services which affect their overall performance. Companies providing the insurance policy should mainly focus on an area that may present loopholes which may lead to fraud and they should lay in place practical strategies that will help to minimize the cost. Several areas need to be considered for one to come up with a valid fraud management strategy.
Ensure that the fraud and management procedures and strategies are laid in place before an incident of fraud is reported to effectively prevent such events. During any underwriting process, the insurer should point out fraud indicators which is essential in preventing any fraud attempt. It is essential to involve more information at the underwriting step to allow the insurer to make an informed decision. Ensure that you are analyzing the data corrected in the underwriting level mas this will help you identify some of the fraud indicators. The insurance firms should understand their prospective clients well to identify fraudulent signs and begin the review of the sale proposal. Have an in-depth analysis of clients information when they are making the proposals and have each document analyze differently. The process of fighting the fraud in insurance companies should start at the beginning when the customers show interest in taking the sales proposals. The the insurance company should come up with best strategies that will help to avoid the cases of fraud
Viewing the situation in a fraud perspective, it is advisable for the insurer to analyze the First Notice of Loss as one of the management steps employed to prevent fraud. Streamlining the process, automation, improved workflow among others are some of the aspects that can aid the insurer to identify the fraud indicators before they affect the overall performance of the form. The firm providing the insurance policy should use the early warning system such as the Voice Analytics for adequate identification of fraud. If you are not careful in dealing with all the fraud indicators, then your company will experience huge loses.
The insurance firm should consider hiring professionals who are familiar with insurance fraud and they are good in investigating such occurrences.