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. It is essential to reduce the claim leakages well by striving to prevent the insurance fraud and have a broader focus on the recovery management which can help the insurance providers to reduce the claim cost. The firms offering insurance policies to various clients should come up with practical techniques and management process which will help to prevent the case of fraud in their companies.
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. It is essential to identify the indicators during the underwriting process which will help to curb the fraud. The clients should give more details which will help to know them better which is useful in reducing fraud. One of the best weapons used to prevent fraud is the responsible use of information during the underwriting analysis. The insurance firms should understand their prospective clients well to identify fraudulent signs and begin the review of the sale proposal. All the document provided by the clients should be scrutinized individually as this will help in identifying the fraud indicators and prevent any incident of a criminal act from taking place. Anytime the client shows up to take on the insurance cover, and the insurance company should analyze them well as one of the basic steps in curbing fraudulent activities. 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 Voice Analytic is a system that can help the insurance company to analyze the situation and identify fraudulent activity before it happens. Note that any delay in identifying the fraud triggers can cost the insurance firm a lot of cash in the long run.
They should build up the fraud investigative skills and abilities and can hire experts with experience and skills in handling of insurance fraud.